S. Korean regulator to penalize shippers for alleged price-fixing

South Korea's antitrust regulator the Korea Fair Trade Commission (KFTC) is poised to penalize the country's leading shipper, HMM Co., and other shipping lines over alleged price-fixing.

The KFTC will hold its plenary meeting next month to finalize the penalty against the shippers.

In May, the KFTC notified 23 shippers at home and abroad that they may face up to 800 billion won in fines for the alleged violation of the fair trade act.

The KFTC has since 2018 been looking into allegations that HMM and others colluded to fix higher freight rates for a Southeast Asian sea route.

Local shippers claimed that the country's maritime shipping act allowed them to take collective actions on freight rates and other contract conditions for transport.

But the KFTC believes they failed to meet certain criteria that are permissible under the law to justify their acts.