Korea Fines Six Paper Makers 338.3 Billion Won for Alleged Price-Fixing, Orders Price Reset

  Joo Byung-ki, chair of the Fair Trade Commission, said Wednesday the agency decided to impose a combined 338.3 billion won in administrative fines on six paper makers for collusion, file corporate complaints and order the companies to reset prices.

Speaking at a meeting of ministers on special management of consumer prices at the Government Complex Seoul, Joo said leading domestic paper companies including Hansol Paper and Moorim secretly agreed on prices for printing paper used widely in education, publishing and other everyday areas. He said the conduct lasted 3 years and 10 months starting in 2021.

Joo called it an unfair practice that sought to respond to industry headwinds — including a shrinking printing-paper market and low profitability — not through productive competition but by shifting harm to consumers and other market participants. He said the FTC will continue monitoring and guidance until prices distorted by collusion return to normal levels, including through the price-reset order.

Joo also signaled tougher steps against repeat offenders, including sanctions severe enough to push companies out of the market. He said the government plans to revise relevant laws to strengthen penalties by expanding surcharge increases for repeat cartels and reducing leniency for voluntary reporting.

He added the FTC is considering a system to order the dismissal or suspension of executives who led collusion. He said the agency is also reviewing strong structural remedies — including corporate breakups, share sales and business divestitures — to eradicate serious unfair practices such as cartels.

Joo said the government will pursue legal and institutional changes, in consultation with relevant ministries, to meaningfully restrict repeat cartel participants from market activity. He added the FTC is considering expanding to other industries a system used in construction and real estate that cancels registrations or permits for repeat collusion participants.