Minister Jung Sung-ho of the Ministry of Justice said on the 6th that to eradicate repeated price collusion by corporations, criminal punishment for individuals—including executives and employees of corporations that planned and carried out the collusion, as well as those behind it—must be significantly strengthened.
The Minister said on social media that day, "Large-scale collusion was uncovered in daily necessity goods and KEPCO bidding through an intensive investigation by prosecutors following recent instructions from President Lee Jae-myung," and added, "What is more serious is that they kept repeating the same acts despite having been caught multiple times in the past for the same type of collusion."
Prosecutors focused on collusion cases involving essential household goods from September last year to January this year and found that flour milling companies, sugar refiners, and electrical equipment corporations engaged in collusion totaling 10 trillion won over several years, recently indicting 52 current and former executives and employees of the related corporations.
The Minister said, "This is proof that lawbreakers have looked down on the public and the rule of law, treating it as 'a business that still profits even if caught,'" and added, "To eradicate organized collusion that distorts prices and toys with people's lives, we must, like in the United States, significantly toughen criminal penalties for 'individuals' such as executives and employees who planned and executed the collusion and those behind it."
However, the Minister pointed out that sanctions still focus on corporate penalty surcharges and that the Korea Fair Trade Commission's criminal complaints against individuals are carried out only in a limited manner. The Minister said, "Statutory penalties are also at the level of 'up to three years in prison,' which is far too low compared with Canada's maximum of 14 years, Australia's maximum of 10 years, and the United States. That is why even the statute of limitations is short," and added, "Institutional improvements are also urgent, including building an efficient cooperation system between the Korea Fair Trade Commission (FTC) and investigative agencies and overhauling the 'leniency (voluntary reporting reduction system)' channel."
The Minister said, "We must make people think of collusion not as 'a business that still profits even if caught,' but as 'if you collude, both the company and my life will be ruined,' so we can stop unfair fouls and protect people's livelihoods," and added, "We request active attention and institutional improvements from the National Assembly and the Korea Fair Trade Commission (FTC)."