The Fair Trade Commission has levied fines on enterprises totaling 913.8 billion won ($846.1 million) so far this year, an all-time high on a yearly basis.
The collective figure for this year far surpasses the antitrust regulator’s fines of 347.3 billion won on rule-violators in 2011 and 507.4 billion won in 2010.
During the first and second year of the Lee Myung-bak administration, the figure was 131.1 billion won and 110.8 billion won, respectively, under the president’s business-friendly policies.
But the business sector, including conglomerates, has become a key investigation target of the FTC as the political power of the incumbent administration has weakened.
In March, the FTC fined Samsung Electronics and two of its executive officers a combined 400 million won for hindering an investigation by antitrust regulators. The fines marked the highest-ever amount imposed for such an offense.
It also fined Samsung Electronics 1.6 billion won in May for irregular practices in its transactions with subcontractors.
The FTC imposed 5.08 billion won in fines on SK Group for violating a law banning a holding company from possessing a financial unit. Under the current antitrust law, a holding company with 100 billion won or more in assets is not allowed to own a financial affiliate.
The regulator also fined ramen makers 135.4 billion won for collusion in fixing prices.
Nongshim, Samyang, Ottogi and Korea Yakult sought to rig prices on six different occasions between 2001 and 2010, according to regulatory officials.
The FTC also took disciplinary action against a group of major builders for cartel activities during their participation in the Lee administration-led project to refurbish the country’s four major rivers.
In June, it slapped fines on eight construction companies and filed a complaint with the prosecution against some executives of several large firms.
It is alleged that some of the builders took the initiative in rigging bid prices or price-fixing in the national refurbishment project.
According to FTC officials, the firms that allegedly led the collusion include Hyundai Engineering & Construction, SK Engineering & Construction, GS Engineering & Construction, Samsung Construction & Trade Corp. and Daelim Industrial.
The combined regulatory fines on the builders exceeded 100 billion won.
By Kim Yon-se (kys@heraldcorp.com)
The collective figure for this year far surpasses the antitrust regulator’s fines of 347.3 billion won on rule-violators in 2011 and 507.4 billion won in 2010.
During the first and second year of the Lee Myung-bak administration, the figure was 131.1 billion won and 110.8 billion won, respectively, under the president’s business-friendly policies.
But the business sector, including conglomerates, has become a key investigation target of the FTC as the political power of the incumbent administration has weakened.
In March, the FTC fined Samsung Electronics and two of its executive officers a combined 400 million won for hindering an investigation by antitrust regulators. The fines marked the highest-ever amount imposed for such an offense.
It also fined Samsung Electronics 1.6 billion won in May for irregular practices in its transactions with subcontractors.
The FTC imposed 5.08 billion won in fines on SK Group for violating a law banning a holding company from possessing a financial unit. Under the current antitrust law, a holding company with 100 billion won or more in assets is not allowed to own a financial affiliate.
The regulator also fined ramen makers 135.4 billion won for collusion in fixing prices.
Nongshim, Samyang, Ottogi and Korea Yakult sought to rig prices on six different occasions between 2001 and 2010, according to regulatory officials.
The FTC also took disciplinary action against a group of major builders for cartel activities during their participation in the Lee administration-led project to refurbish the country’s four major rivers.
In June, it slapped fines on eight construction companies and filed a complaint with the prosecution against some executives of several large firms.
It is alleged that some of the builders took the initiative in rigging bid prices or price-fixing in the national refurbishment project.
According to FTC officials, the firms that allegedly led the collusion include Hyundai Engineering & Construction, SK Engineering & Construction, GS Engineering & Construction, Samsung Construction & Trade Corp. and Daelim Industrial.
The combined regulatory fines on the builders exceeded 100 billion won.
By Kim Yon-se (kys@heraldcorp.com)
