FTC fines former Dongbu affiliates over fair trade law

Korea’s antitrust agency fined former affiliates of Dongbu Group 493 million won ($441,538) on Wednesday for violating fair trade laws.

The Fair Trade Commission said that it will punish FarmHannong, Donghwa Fresh Produce and Dongbu Farm for unfair financial dealings worth 56.7 billion won conducted between 2012 and 2016.

FarmHannong and Donghwa Fresh Produce unfairly financed Dongbu Farm, which suffered financial problems during the period, through the purchase of Dongbu’s corporate bonds. The agency said that the practice disturbed fair competition by keeping an underperforming firm afloat. FarmHannong was fined 225 million won and Dongbu Farm was fined 160 million won. Donghwa Fresh Produce was hit with fines of 108 million won. By Park Eun-jee