The Korea Fair Trade Commission imposed penalty surcharges averaging 5.4% of sales on corporations involved in collusion from January to July this year, according to data compiled on the 19th. The penalty surcharge rate climbed from 2.8% in 2024 to 3.1% in 2025 and has now surged to the highest level in five years.
Analysts say this is the result of the government tightening sanctions on collusion to the point that President Lee Jae-myung warned colluding corporations that "a company could go under." In response, there are concerns that the burden of the penalty surcharge for collusion could be passed on to consumers.
◇ President Lee: "If collusion is repeated, expel them"… penalty surcharge equal to 39% of annual sales appears
When collusion is confirmed, the Korea Fair Trade Commission (FTC) imposes a penalty surcharge on the corporation as a set percentage of the related sales. For "very serious collusion," 18%–20% of sales; for "serious collusion," 15%–18%; and for "collusion of lesser seriousness," 10%–15% can be imposed, respectively.
The final penalty surcharge imposed on colluding corporations is set as a percentage of sales after applying various aggravating and mitigating factors. When this percentage rises, it can be seen as the FTC broadly strengthening sanctions on collusion.
According to data obtained by Rep. Seo Il-joon of the People Power Party on the National Policy Committee from the FTC, in 2024, 253 corporations were caught for collusion and were imposed penalty surcharges averaging 2.8% of the related sales.
After that, the percentage rose each year. In 2025, 235 corporations were caught for collusion, and the penalty surcharge imposed on them averaged 3.1% of related sales. Then, from January to July this year, 5.4% of related sales was imposed as penalty surcharges for collusion by 113 corporations. The rate, which had been in the high-2% to low-3% range over the past five years, has jumped sharply to the mid-5% range.
Since its launch in 2025, the Lee Jae-myung administration has moved to ease economic criminal penalties while strengthening sanctions on collusion. Lee said repeatedly that "collusion is a cancer that hinders the development of the national economy" and that "if it is repeated, we should also actively consider measures to permanently expel them from the market."
Accordingly, the FTC is pursuing measures to extend the statute of limitations for dispositions on collusion from 12 years to 15 and to impose penalty surcharges exceeding the unjust gains from collusion. In fact, there was a case where a colluding corporation was imposed a penalty surcharge equal to 39% of its annual sales.
◇ Floor for collusion penalty surcharges also raised… imposed equal to two years of net income
In the past, when the FTC could set a collusion penalty surcharge within a range between X% and Y% of related sales, it often applied the floor, X%. In 2024, the FTC applied the penalty surcharge floor to 160 out of 253 corporations (63.2%) caught for collusion. In 2025, the floor was applied to 153 out of 235 corporations (65.1%) caught for collusion. However, from January to July this year, only 11 out of 113 corporations (9.7%) caught for collusion had the floor applied. As a result, the minimum amount of collusion penalty surcharges can be seen as having risen.
Here, too, there was a directive from President Lee Jae-myung. At a Cabinet meeting in January, Lee said, "What's the point of setting the ceiling at 20%? They work the system and end up paying only 2%." He was pointing out that even if the ceiling is raised, various reductions could lower the amount, so the floor should be raised.
Afterward, in the wheat flour and sugar price-fixing cases, the record-high penalty surcharge rate of 15% was applied. As a result, there were companies that were imposed penalty surcharges equal to two years of net income.
On this, Rep. Seo Il-joon of the People Power Party said, "If the FTC slaps corporations with a penalty surcharge bomb, the burden will be passed on to consumers," adding, "We need to find the balance between mediation for a fair market and corporations' smooth business operations."