The Korea Fair Trade Commission said on the 2nd it imposed a 2.239 billion won penalty surcharge on seven ready-mix concrete manufacturers and sellers on suspicion of collusion. The companies in question—Dongyang Ready-Mixed Concrete, Goryeo Ready-Mixed Concrete, Gwanghyeon Ready-Mixed Concrete, KW, Seoheung Industry, Jungwon Industry, and Jeon-guk Industry—operate in the Gwangyang area of South Jeolla. An FTC probe found they coordinated to align ready-mix concrete prices at similar levels.
According to the Korea Fair Trade Commission (FTC) that day, the seven ready-mix concrete manufacturers and sellers agreed not to compete on price, including by raising prices together, after their business conditions deteriorated due to higher raw and subsidiary material costs. The agreement lasted from May 2021 to Sept. 2023. During that period, the seven companies raised ready-mix concrete prices three times. As a result, the price of ready-mix concrete (25-24-150 specification), which had varied by company between 55,000 won and 80,000 won, was raised across the board to 91,200 won. When construction companies pushed back that the price was too high, they responded by threatening to suspend operations at their ready-mix plants.
The Korea Fair Trade Commission (FTC) applied a violation of Article 40(1)1 of the Monopoly Regulation and Fair Trade Act, which punishes "acts of jointly and unjustly restricting competition with other business operators," to the seven companies. The FTC said, "It is meaningful that we corrected collusion by manufacturers and sellers that hold a 100% market share in the ready-mix concrete sales market in the Gwangyang area."