During a National Assembly audit, concerns were raised about companies accused of leading collusion using the self-reporting leniency system to avoid fines.
On October 12, Fair Trade Commission Chairman Joo Byeong-ki responded to a query from lawmaker Han Chang-min of the Democratic Party regarding collusion in the paper industry, stating, "We are preparing legislative amendments to prevent leading companies from unfairly benefiting from leniency."
The leniency system allows companies involved in collusion to receive reduced fines or corrective measures if they voluntarily report their illegal activities and cooperate with investigations. While intended to increase the likelihood of detecting covert collusion among companies, concerns have been raised about the potential for abuse, particularly when leading companies also receive leniency benefits.
In this context, lawmaker Han pointed out that Hansol Paper, which led a recent collusion case involving printing paper, was able to avoid a fine of 142.6 billion won through the leniency program. According to the Fair Trade Commission's decision document presented by Han, Hansol was identified as the largest market player and the leader in the collusion. Additionally, Murim, which actively proposed price increases and discount adjustments, also received a reduction of 51.7 billion won in fines.
Han expressed concern that companies could repeatedly lead collusion, self-report, and escape penalties while leaving other competitors to face difficulties. He urged that the assessment should consider not only whether a company led collusion but also its history of repeated violations and the impact of leniency on market competition.
Chairman Joo emphasized that the foundation of a market economy is competitive order, and that price collusion and monopolistic practices are among the most harmful actions to the market economy. He noted that discussions on legislative amendments for increased penalties for repeated collusion and measures to prevent the abuse of the leniency system are underway.
He also highlighted the need for practical remedies for victims of collusion, stating, "In the current system where fines go to the national treasury, it is difficult to achieve direct recovery for affected companies and consumers. We will consider remedies through a victim compensation fund and collective or group litigation systems."
* This article has been translated by AI.
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