10 Korean petrochemical firms accused of price fixing
The Fair Trade Commission (FTC) has found that domestic oil refiners have long engaged in price collusion on petrochemical goods. The commission is expected to levy fines totaling 200 billion won (US$220 million) against the companies involved, the largest fines ever in Korea, if imposed. "About 10 domestic petrochemical companies have been found to have fixed prices and production volumes in their main product lines, including high and low density polyethylene,” said an FTC official on November 19, asking not to be named. "Most local petrochemical companies are included on the list [of offenders], and we are shocked over the rampant cartel practices in the industry." Since early last year, the FTC has investigated oil refining companies over allegations of price fixing. The FTC official said the antitrust watchdog may impose fines worth as much as 200 billion won, but that the fines may be reduced slightly if the oil refiners can successfully argue that price fixing was a customary activity at the time, and that they were struggling with higher oil prices. The FTC plans to complete the investigation and make a final announcement as early as possible. The case draws attention because the commission recently declared that it would focus on strengthening regulations on cartel practices. FTC Chairman Kwon Oh-seung said, "We plan to aim our focus on investigations of abuse by dominant market players, unfair marketing practices, and cartels."Last year, the commission imposed fines totaling 110 billion won against fixed-line telephone operators, including KT Corp. and Hanarotelecom Inc., over price collusion. Please direct questions or comments to [englishhani@hani.co.kr]
