US wireless chipmaker Broadcom Inc. said Monday it plans to seek an appeal against the South Korean regulator's decision to slap a 19.1 billion-won ($14.3 million) fine for its unfair business practices against Samsung Electronics Co.

In a statement, Broadcom said it was "disappointed" over the Fair Trade Commission's decision, noting it plans to appeal the case to the Seoul High Court.

The punishment of Broadcom came after the US firm forced Samsung to sign a long-term agreement in 2020 by taking advantage of its market dominance and using unlawful tactics, including cutting off its supply and technical support, according to the FTC.

Under the deal, Broadcom compelled Samsung Electronics to procure its smartphone parts worth $760 million annually from 2021 to 2023 and required the South Korean tech giant to compensate for any shortfall if the purchasing amount falls below that amount.

"Broadcom has been working closely with Korean customers in a fair and lawful manner and has made significant contributions to the innovation and success of the Korean economy and some of its largest technology organizations," the company said in the statement.

"Broadcom worked very closely with the staff of the KFTC to reach a mutually beneficial outcome that is fair and reasonable for all parties involved," it added.

In June, the FTC rejected Broadcom's proposal to voluntarily correct its unfair business practices with 20 billion won, ruling in favor of Samsung.

The regulator earlier said the proposal "fell short as a suitable measure to restore the fair trade order and safeguard the interests of other industry players." (Yonhap)