The Korea Fair Trade Commission announced on the 23rd that it will begin deliberation procedures for 10 lubricant companies under investigation for alleged price fixing. The Korea Fair Trade Commission (FTC) will convene the commission (a plenary session or subcommittee) to make a final determination on whether the law was violated and decide the level of sanctions, including a penalty surcharge.
The companies that the Korea Fair Trade Commission (FTC) determined have alleged price-fixing and bid-rigging are Gwangwoo, Kukdong Oil & Chemicals, DH Chemical, Beomwoo Chem, Beomwoo Chemical, Beomwoo Fine Chem, Beomwoo Chemical, SHL, Korea Houghton, and HanYu SK ETS.
The Korea Fair Trade Commission (FTC) concluded that from Jan. 2018 to Oct. 2024, these corporations colluded on lubricant supply prices. The Korea Fair Trade Commission (FTC) said it believes these corporations agreed on sales prices whenever costs rose due to the Russia-Ukraine war and COVID-19, affecting market prices. According to the Korea Fair Trade Commission (FTC), the 10 corporations hold about an 80% share of the metalworking fluid market and about a 21% share of the industrial oil market. The Korea Fair Trade Commission (FTC) estimated the related sales affected by the alleged collusion at about 2.02 trillion won.
The Korea Fair Trade Commission (FTC) determined there is a suspicion that they violated Article 40, Paragraph 1, Subparagraph 1 (price fixing) and Subparagraph 8 (bid rigging) of the Monopoly Regulation and Fair Trade Act. After deliberation, the Korea Fair Trade Commission (FTC) may impose a penalty surcharge of up to 20% of the related sales affected by the collusion under the relevant laws and regulations.
A Korea Fair Trade Commission (FTC) official said, "It is difficult to disclose how much lubricant prices rose due to collusive conduct because the commission's final illegality determination is pending."