Sixty-five companies have been implicated in collusion cases three or more times over the past seven years. As regulatory authorities increase penalties for repeated collusion, there are calls to enhance the effectiveness of existing sanctions.
According to data submitted by the Fair Trade Commission to Park Seong-hoon, a member of the National Assembly's Political Affairs Committee, from 2020 to August of this year, a total of 65 businesses were involved in different collusion cases three or more times.
Among these companies, Hanssem topped the list with 20 cases. Hyundai Livart and Dongbang followed with 18 cases each, while Enex had 16, Neps had 14, CJ Logistics had 13, and Emons Furniture had 12. Sebang and Hanjin were also named in 11 collusion cases each.
Notably, many furniture companies ranked high on this list. The five companies—Hanssem, Hyundai Livart, Enex, Neps, and Emons Furniture—each had 12 or more cases. In the past, large-scale bid rigging related to built-in furniture supply for apartments was uncovered in the furniture industry. The Fair Trade Commission revealed in April 2024 that 31 furniture companies, including Hanssem and Hyundai Livart, had colluded on bid prices and winning bidders for 738 special purchase bids from 24 construction companies between 2012 and 2022. The total fine imposed at that time was 93.1 billion won.
The scale of fines for collusion has also surged dramatically. Last year, fines for unfair joint actions amounted to 263.6 billion won, but from January to August of this year alone, they reached 2.4576 trillion won. This marks a significant increase compared to the annual fine of 219.3 billion won in 2024.
The government is pushing to strengthen penalties for repeated collusion. The Fair Trade Commission raised the minimum basic fine rate for collusion from 0.5% to 10% as of April 30. For serious collusion, the minimum was increased from 3% to 15%.
Additionally, businesses with a history of collusion within the past ten years can face fines increased by up to 100%. However, the revised standards do not apply to violations that ended before the implementation date. There are also plans to reduce the benefits of self-reporting for leniency.
Measures for cancellation of registration or suspension of business operations are also being considered. The government and the Democratic Party are working on a plan that would allow for cancellation of registration or suspension of operations for businesses that engage in collusion twice or more within five years across 17 sectors, including safety, energy, environment, and transportation. The statute of limitations for collusion penalties is also set to be extended from the current maximum of 12 years to 15 years, and legal grounds for price re-determination orders will be established.
However, there are concerns about the deterrent effect of penalties before the legal amendments. Park Seong-hoon stated, "There are many businesses that continue to be implicated in collusion cases even after being fined. The losses incurred when caught must clearly outweigh the profits gained from collusion." He added, "We need to break the vicious cycle by increasing penalties for repeated violations and limiting leniency for self-reporting."
* This article has been translated by AI.
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