[Source: Korea Fair Trade Commission]
Eighteen manufacturers and sellers of plastic pallets that allegedly coordinated bid winners and prices have been fined by South Korea’s antitrust watchdog.
The Fair Trade Commission said May 7 it will impose a combined 11.737 billion won ($11.7 billion won) in penalties and issue corrective orders against the 18 companies for avoiding competition and fixing prices.
Pallets are platforms used in logistics to bundle and move multiple items as a single load.
The companies took part in 165 bids run by 23 businesses and, through phone calls, in-person meetings and mobile messaging, agreed in advance on the expected winner, “cover” bidders and bid prices for each tender, the commission said. The cover bidders submitted bids at the agreed price level, and the designated winner shared part of the collusive profits with other firms.
In particular, five of the firms also agreed on which company would supply pallets in transactions with NongHyup Economic Holdings and then split the profits, the commission said. When local NongHyup cooperatives asked to buy pallets, four other firms quoted prices higher than the NongHyup supply price to steer purchases through Economic Holdings.
The collusion lasted 6 years and 8 months and involved 369.2 billion won in related sales, the commission said. It said 23 companies, including Lotte Chemical, DL Chemical and Seoul Milk Cooperative, were harmed.
An FTC official said the agency will respond strictly to cartels that impose unnecessary costs on businesses and weaken industrial competitiveness.
The Fair Trade Commission said May 7 it will impose a combined 11.737 billion won ($11.7 billion won) in penalties and issue corrective orders against the 18 companies for avoiding competition and fixing prices.
Pallets are platforms used in logistics to bundle and move multiple items as a single load.
The companies took part in 165 bids run by 23 businesses and, through phone calls, in-person meetings and mobile messaging, agreed in advance on the expected winner, “cover” bidders and bid prices for each tender, the commission said. The cover bidders submitted bids at the agreed price level, and the designated winner shared part of the collusive profits with other firms.
In particular, five of the firms also agreed on which company would supply pallets in transactions with NongHyup Economic Holdings and then split the profits, the commission said. When local NongHyup cooperatives asked to buy pallets, four other firms quoted prices higher than the NongHyup supply price to steer purchases through Economic Holdings.
The collusion lasted 6 years and 8 months and involved 369.2 billion won in related sales, the commission said. It said 23 companies, including Lotte Chemical, DL Chemical and Seoul Milk Cooperative, were harmed.
An FTC official said the agency will respond strictly to cartels that impose unnecessary costs on businesses and weaken industrial competitiveness.
* This article has been translated by AI.
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