It is known that the Fair Trade Commission has discovered a large-scale government-level rebar fixing and has begun the sanction process. It is reported that the sanctions target about 10 companies ranging from large steel mills to small rolling mills. Considering that these companies generated more than 4 trillion won in sales during the alleged period, a fine of around 100 billion won is expected to be imposed.
According to industry sources on the 24th, the Fair Trade Commission (FTC) sent out a review report stating that sanctions were necessary after completing an investigation into the government-level rebar fixing of about 10 large steelmakers and rolling companies such as Hyundai Steel, Dongkuk Steel, and Korea Steel. The FTC’s review report has the same role as the prosecution’s indictment. The FTC’s review report is the first sanction process for alleged violations of the law.
The Fair Trade Commission is reported to have determined that the companies engaged in price fixing for about five years from 2012 to 2016 in the government-level rebar bidding ordered by government ministries and local governments. According to the Public Procurement Service, the amount of rebar supply from 2012 to 2016 was about 4,157.2 billion won. The FTC penalty is levied on the basis of sales, and if the 3% penalty rate imposed during the private rebar fixing in 2018 is applied, it is estimated to be at least 120 billion won.
The Office of the Fair Trade Commission is known to have expressed the opinion that in addition to fines, it is necessary to file a complaint with the prosecution against some companies. The Fair Trade Commission (FTC) plans to hold a plenary meeting after receiving opinions on the review report from the companies under investigation (subject to sanctions) by next month to determine the illegality and determine the level of the fine. A Hyundai Steel official said, “If the Fair Trade Commission holds a plenary meeting after reviewing the review report, we will faithfully respond to this issue.”
An official from Dongkuk Steel said, “The Fair Trade Commission is currently reviewing the review report, so it is difficult to make specific comments on the countermeasures.”
Previously, in September 2018, the Fair Trade Commission discovered collusion in which six steelmakers, including Hyundai Steel, Dongkuk Steel, Korea Steel, Daehan Steel, YK Steel, and Hwanyeong Steel, limited the discount range of rebar for direct sale or distribution to a certain level. At that time, the total fine was 119.4 billion won. The six steelmakers were dissatisfied with the decision of the Fair Trade Commission and even filed an administrative lawsuit, but the Supreme Court recently confirmed that the decision of the Fair Trade Commission was correct.
[김희래 기자 / 문광민 기자]
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