The photo provided by News1 features an article discussing the penalty imposed by the Fair Trade Commission (FTC) on five steel manufacturing and sales companies for colluding to adjust product prices based on raw material costs. When raw material prices increased, these companies collectively raised product prices, but maintained existing prices when costs dropped. This anti-competitive behavior led to corrective orders and fines totaling 6.549 billion KRW.
The companies involved include Korea Wire, Daehan Steel Wire, Chungwoo Metal, Hanil Steel, and Jinheung Steel. According to the FTC, from December 2016 to February 2022, these companies agreed to jointly increase prices of four products, including galvanized wires, when raw material costs rose. Conversely, they agreed not to compete on prices when costs decreased.
The companies enforced this agreement by sending price increase notices to clients, either in writing or verbally. The products in question, like galvanized wires, are processed from steel wires and used as intermediates for various goods such as fences, gabions, staples, power cables, wire ropes, and automotive cables.
Over the five-year period of collusion, the prices of these products were increased 10 times, by 50 to 200 KRW per kilogram, resulting in a price hike of 42.5 to 63.4% compared to pre-collusion levels.
An FTC representative emphasized their commitment to strengthening the monitoring of collusion in intermediate goods industries and taking strict measures against any detected violations.