South Korea to strengthen sanctions against repeat collusion

collusion crackdown Fair Trade Act business suspension market exit price resetting

The South Korean government and the Democratic Party have announced a legislative plan to strengthen sanctions against companies that engage in repeated collusion. The measures target 17 industries closely linked to public welfare, including pharmaceuticals, petroleum, firefighting, and transportation.

Under the proposed changes, businesses that engage in collusion twice or more within a five-year period could face business suspension or the cancellation of their registration. This moves beyond traditional fines to include potential market exit for habitual offenders. To increase the effectiveness of detection, the statute of limitations for collusion cases will be extended, potentially allowing for a maximum period of 15 years.

Additional measures include codifying the legal basis for 'price resetting orders' within the Fair Trade Act to correct prices distorted by collusion. The plan also seeks to enhance monitoring in the education sector by integrating local education office bidding data into the Fair Trade Commission’s BRIAS system. While leniency for fines and prosecution will remain for companies that self-report, they will no longer be exempt from corrective measures such as price resetting.

Entities

Democratic Party of Korea · Fair Trade Commission · Joo Byung-ki · Ju Byung-gi · Kwon Chil-seung · Min Byung-deok · South Korea

Claims

What the coverage asserts, and how many sources carry each claim.

[● 4 SOURCES] The Democratic Party and the government are pursuing legislative amendments to allow for the cancellation of registration or suspension of business operations for companies that engage in collusion. www.hidomin.com · www.hani.co.kr · blockchainseoul.kr
[● 4 SOURCES] The measures target 17 industries closely linked to public welfare, including firefighting, pharmaceuticals, petroleum, and transportation. www.hidomin.com · www.hani.co.kr · blockchainseoul.kr
[● 4 SOURCES] Monitoring of bidding collusion in the education sector will be strengthened by linking education office bidding data to the BRIAS system. www.hidomin.com · blockchainseoul.kr · www.hani.co.kr
[● 4 SOURCES] Exemptions from corrective measures for self-reporting companies will be abolished, though leniency for fines and prosecution will remain. www.hidomin.com · www.hani.co.kr · blockchainseoul.kr
[● 4 SOURCES] The legal basis for price resetting orders will be codified in the Fair Trade Act to correct prices distorted by collusion. www.hidomin.com · www.hani.co.kr · blockchainseoul.kr
[● 4 SOURCES] The statute of limitations for collusion cases will be extended, increasing the maximum period from 12 years to 15 years. www.hidomin.com · www.hani.co.kr · blockchainseoul.kr