Government and Democratic Party to Strengthen Sanctions on Collusive Companies

Seoul:The government and the ruling Democratic Party (DP) have announced plans to pursue legal amendments aimed at imposing harsher sanctions on companies that repeatedly engage in collusion. According to Yonhap News Agency, the government and the DP intend to introduce a system that could revoke business registrations or suspend operations of companies guilty of price fixing or bid rigging across 17 industrial sectors. This initiative was disclosed by Min Byoung-dug, deputy chair of the party's policy committee, following a policy consultation meeting. The targeted sectors include safety, energy, and transportation. To implement these changes, the Fair Trade Act and 17 sector-specific laws are expected to be amended. The statute of limitations for sanctions on collusive practices will be extended, and information from large-scale public tenders commissioned by offices of education will be linked with the Fair Trade Commission's Bid-Rigging Indicator Analysis System. Additionally, the government and the DP will strictly enforce previously revised laws that permit the imposition of punitive fines for repeated collusion. Ju Biung-ghi, head of the Fair Trade Commission, emphasized during the meeting that collusion undermines the market economy by seeking unjust profits at the expense of consumers and other economic actors. Kwon Chil-seung, chair of the DP policy committee, highlighted the importance of clearly warning the market that the cost of collusion significantly outweighs any potential gains.