It was confirmed on the 6th that the Korea Fair Trade Commission cut nearly 100 billion won from the penalty surcharge while sanctioning a sugar price-fixing case worth about 3.2 trillion won. The reason for the reduction in the penalty surcharge was that the companies involved in the collusion cooperated with the Korea Fair Trade Commission during the investigation and hearing process.
According to the written decision released that day, the Korea Fair Trade Commission (FTC) imposed a 395.8 billion won penalty surcharge in the sugar price-fixing case involving CJ CheilJedang, Samyang Corporation, and TS Corporation. That is 99.1 billion won (about 20%) less than the initially calculated first penalty surcharge of 494.9 billion won.
Accordingly, by company, CJ CheilJedang's penalty surcharge was reduced from 172.9 billion won to 138.3 billion won, Samyang Corporation's from 162.8 billion won to 130.2 billion won, and TS Corporation's from 159.2 billion won to 127.3 billion won. On the reasons for mitigation, the Korea Fair Trade Commission (FTC) said, "From the investigator's investigation stage through the close of the hearing, they consistently acknowledged the conduct and actively cooperated with the investigation by submitting materials or giving statements that helped determine illegality." Under the notice on detailed standards for imposing a penalty surcharge, cooperation in the investigation and the hearing can earn a 10% reduction at each stage, for a maximum 20% reduction in the penalty surcharge.
There is another indication that the three companies received lower penalty surcharges. A penalty surcharge is calculated by multiplying the relevant sales by an imposition base rate according to the gravity of the conduct, and in this case the Korea Fair Trade Commission (FTC) chose the lowest applicable imposition base rate. For a "very serious violation," the imposition base rate is set between 10.5% or more and less than 20%. The Korea Fair Trade Commission (FTC) applied a 15% imposition base rate to the three companies. Had the maximum rate of 20% been applied, the three companies' penalty surcharges could have increased by 132 billion won from the original amounts.
Meanwhile, the three companies have filed an administrative lawsuit, saying the Korea Fair Trade Commission (FTC)'s sanction is excessive.