South Korea's antitrust agency fined 10 local petrochemical companies a total of 105.1 billion won (US$111.61 million) on Tuesday for rigging the prices of their plastic products.
The Fair Trade Commission (FTC) said the companies were found to have held monthly price-fixing meetings since 1994 concerning their polypropylene and high-density polyethylene products, mostly used in plastic containers and bottles.
Top refiner SK Corp. received the largest fine, 23.8 billion won, followed by Korea Petro Chemical Ind. Co. with 21.2 billion won and LG Chemical Ltd. with 13.1 billion won.
The FTC also said it plans to file criminal charges against five companies for allegedly playing a key role in holding the price-rigging meetings.
"The sanctions are designed to ensure a stable supply for the local plastic industry," the watchdog said in a statement.
The irregularities are estimated to have cost consumers approximately 1.56 trillion won in damages, as the routine price rigging prompted hikes in the prices of consumer products, according to the FTC.
Meanwhile, the companies objected strongly to the decision, saying that their actions weren't intended to reap excessive profits.
"The meetings were aimed at seeking a balance in supply and demand amid fierce competition, and a breakthrough from a long-term slump within the petrochemical industry," an industry official said, asking to be unnamed.
The decision comes amid an ongoing investigation into alleged price rigging among four oil refiners, including SK and GS Caltex, with fines expected to be announced sooner or later.
Earlier in the month, FTC Chairman Kwon Oh-seung said that his agency plans to tighten its grip on the country's raw materials sector, saying it was "deeply linked to people's everyday lives and corporate competitiveness."
Seoul, Feb. 20 (Yonhap News)
Watchdog fines 10 petrochemical firms for price rigging |
