The Fair Trade Commission launched on-site inspections of major manufacturers to see whether there are issues in how menstrual pad prices are set in Korea. It is a follow-up measure after President Lee Jae-myung publicly raised the issue of menstrual pad prices recently.
According to the industry on the 24th, the Korea Fair Trade Commission (FTC) began securing documents by sending investigators to the headquarters of three menstrual pad manufacturers—Yuhan-Kimberly, LG Unicharm, and KleanNara—starting the day before. The Korea Fair Trade Commission (FTC) is examining the overall process of these companies' price setting and transaction practices.
The focus of the investigation is whether menstrual pad prices have been artificially inflated by anti-competitive conduct. The Korea Fair Trade Commission (FTC) plans to verify the facts, centering on whether there was price collusion among firms or price abuse using market power. Under relevant law, conduct in which businesses jointly set or maintain prices or transaction terms is prohibited as an unfair concerted act, and conduct that unfairly determines, maintains, or changes prices is also subject to sanctions.
Along with pricing, the Korea Fair Trade Commission (FTC) is also said to have included in the scope of its investigation the labeling practices for materials used in certain high-priced menstrual pad products. The intent is to check whether products labeled as using organic ingredients or herbal materials were actually produced with those materials and supplies. If the labeling differs from the facts, it could constitute a violation of the Act on Fair Labeling and Advertising. If legal violations are confirmed by the investigation, the Korea Fair Trade Commission (FTC) plans to impose sanctions such as corrective orders or a penalty surcharge.
Earlier, on the 19th, during a Korea Fair Trade Commission (FTC) briefing, President Lee said, "I hear our country's menstrual pads are that expensive," and requested, "It would be good if you could conduct an investigation."