South Korean lawmakers urge punitive damages as cartel fines remain low

An analysis of 237 collusion cases by the Korea Fair Trade Commission (KFTC) reveals that actual fines imposed average only 5.85% of the relevant sales revenue. While the total sales revenue involved in these cases reached approximately 36.39 trillion won, the total fines collected amounted to only 2.13 trillion won.

Data shows significant fluctuations in the fine-to-revenue ratio. In 2024 and 2025, the ratios were low at 1.54% and 1.32% respectively, though the ratio rose to 11.90% this year, largely due to major sugar and flour price-fixing cases. Even in those major cases, fines were reduced during adjustment stages to 12.4% and 11.8% respectively, despite being classified as 'very serious violations' that could have warranted up to 20%.

Representative Han Chang-min of the Social Democratic Party argued that the current fine system lacks sufficient deterrent power. He suggested that even increasing the maximum fine limit from 20% to 30% might be ineffective if reductions continue during adjustment phases. To combat recurring collusion, Han proposed the introduction of class action lawsuits and punitive damages to ensure companies face significant financial consequences.