National Construction Equipment Yeongcheon Council, Order to Correct Suspension of Excavator Rental Price Decision

[Asia Economy Reporter Moon Chaeseok] The Yeongcheon City Council of the National Construction Machinery Excavator Rental Association, a group of excavator rental operators, was caught by the Fair Trade Commission for deciding excavator rental prices and restricting joint excavator work with non-members.

The Fair Trade Commission announced on the 8th that it decided to issue a corrective order to the Yeongcheon Council for such unfair practices.

According to the Fair Trade Commission, the Yeongcheon Council decided excavator rental prices twice, in 2013 and 2018. In 2013, the price was set at 350,000 to 750,000 KRW per day, and in 2018, it was set at 400,000 to 900,000 KRW, and the resolution details were notified to the members.

Accordingly, the Fair Trade Commission issued corrective orders to the Yeongcheon Council, including suspension, future prohibition, and notification to constituent businesses.

They also restricted joint excavator work with non-members. In April and July 2017, when excavators owned by non-member companies were deployed at the construction site of Wansan Misojeum Apartment in Yeongcheon, after an executive meeting, the members resolved not to work jointly with non-members and notified the members via text message.

As a result, the Fair Trade Commission issued corrective orders including future prohibition and notification to constituent businesses.

A Fair Trade Commission official said, "This action clearly shows that the competitive restriction practices of excavator rental business associations, which were carried out as a custom, violate the Fair Trade Act," and added, "It is expected to suppress similar illegal activities in other regional markets in the future."

Source=Korea Fair Trade Commission

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