The Fair Trade Commission announced on the 16th that it has issued a corrective order and a penalty surcharge of 137 million won to PASECO, which designated resale prices to its home appliance sales agents, preventing price discount competition.
PASECO is a manufacturer and distributor of built-in home appliances, including heating and cooling devices. Its fireplaces are popular among camping enthusiasts. The company's annual sales reached 227.2 billion won as of 2021.
According to the Fair Trade Commission, PASECO is accused of setting the online minimum sale price for its products, such as kimchi refrigerators, heaters, and built-in home appliances, from September 2018 to February 2022. It allegedly informed agents several times that if they sold at a lower price, supply would be halted and products would be recalled. In practice, PASECO checked the sales prices of agents and notified three agents of supply suspension, product recall, and end of transaction for selling below the designated minimum price.
A Fair Trade Commission official pointed out, "Such actions constitute resale price maintenance, compelling transaction partners to sell goods supplied by the company at specified prices."
PASECO also banned online sales of built-in home appliances from February 2020 to September 2022 and warned agents who violated this of a supply halt. The Fair Trade Commission explained that this is an act of tying transactions, which unjustly restricts the business activities of transaction partners.
A Fair Trade Commission official said, "We plan to sternly sanction resale price maintenance and other practices that limit price competition and cause consumer harm in the future."