S. Korea fines six paper makers 338.3 billion won for printing paper price-fixing

  The Fair Trade Commission said it will fine six paper makers a total of 338.325 billion won for colluding on printing paper prices and ordered them to independently reset prices. It also decided to refer two of the companies to prosecutors.

According to the commission, Hansol Paper and five other companies, including Moorim SP, met at least 60 times over 3 years and 10 months from February 2021 to December 2024 and agreed on printing paper prices seven times. During that period, they raised list prices at least twice and reduced discount rates five times. 

The commission said the companies tried to conceal the collusion by avoiding phones registered in their own names and instead using restaurant phones and other methods. It added they also agreed on the order in which they would notify customers of price increases to avoid backlash concentrating on any one firm. 

The commission said the companies secured stable operating profits through the cartel while shifting the harm to consumers. It said the six firms held an average market share close to 81%, giving them direct influence on the market, and that the collusion led to an average 71% rise in printing paper selling prices.

The commission said the conduct violated Article 40(1) of the Monopoly Regulation and Fair Trade Act and imposed fines totaling 338.325 billion won. The penalties were: Hansol Paper 142.58 billion won; Moorim P&P 91.957 billion won; Hankook Paper 49.057 billion won; Moorim Paper 45.846 billion won; Hongwon Paper 8.538 billion won; and Moorim SP 347 million won. It decided to refer Hankook Paper and Hongwon Paper to prosecutors. 

The total is the fifth-largest fine the commission has imposed in a cartel case and the largest ever in a collusion case involving paper makers. Citing the fact that list prices have not changed since the last price-fixing agreement, the commission ordered the companies to reset prices on their own and report any changes every six months for the next three years. 

Nam Dong-il, the commission’s vice chairman, said the action is expected to ease burdens on printing and publishing companies and small distributors, and help stabilize household costs such as education expenses and book purchases. He said the commission will continue to strengthen monitoring of collusion in sectors closely tied to daily life. 



* This article has been translated by AI.

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