Korea's antitrust watchdog mulls fines against telecom giants for price fixing

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Korea's antitrust watchdog mulls fines against telecom giants for price fixing

Published: 07 Oct. 2024, 18:44

SHIN HA-NEE
shin.hanee@joongang.co.kr

Pictured is a mobile phone store located at an electronics market in Seoul in January. [YONHAP]

Korea's antitrust regulator is mulling fines of up to 5.5 trillion won ($4.1 billion) against the country's three major telecom companies over alleged price fixing.

According to People Power Party (PPP) Rep. Choi Soo-jin's office Monday, the Fair Trade Commission (FTC) has internally made a tentative decision to impose a fine ranging between 3.4 trillion won and 5.5 trillion won. The potential penalty follows allegations that SK Telecom, KT and LG Uplus colluded to fix the sales incentives provided by the carriers to sales branches to offer discounts.

The three companies have been accused of fixing the incentive prices at a similar level to each other by sharing internal information from 2015 to 2022. The fine is expected to range from 1.4 and 2.2 trillion won for SK Telecom, 1 and 1.7 trillion won for KT, and 985 billion won to 1.6 trillion won for LG Uplus.

The final decision regarding whether the companies violated the law and the extent of the penalty will be made at an FTC plenary meeting, which the PPP lawmaker said will be scheduled for early next year.

Following media reports citing Choi's office, the fair trade regulator issued a statement saying that no final decision has been made regarding the case.

FTC also addressed criticism of a potential discrepancy between the regulator and the Korea Communications Commission (KCC), which reportedly found the companies not guilty of the allegations, as KCC’s guideline has been advising them to keep the incentive at around 300,000 won.

"The FTC and KCC have been collaborating since the investigation of the allegation began and will continue to closely communicate with each other through the upcoming processes,” said the FTC.

During a parliamentary hearing Monday, KCC Vice Chairperson Kim Tae-gyu, who is serving as an acting chairperson due to the ongoing impeachment motion on the chief, addressed a question on the reported conflict, saying that “Each agency may have their own perspective due to their roles.”

“We will strive to find a solution,” Kim added.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]