'Selling Prices at Will'... Fair Trade Commission Issues Corrective Orders to Six Haenam Ready-Mix Concrete Companies

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission decided on the 27th to issue a corrective order to six ready-mixed concrete (remicon) manufacturers and the Haenam Area Remicon Council, who jointly set remicon sales prices and determined market shares based on sales volumes in the Haenam region of Jeollanam-do.

According to the Fair Trade Commission, six remicon companies located in Haenam?Nambu Industry, Kumho Industry, Ilgang Remicon, Namhyang Remicon, Dongguk Remicon, and Samho Industry*?and the Haenam Area Remicon Council decided around November 2017 not to sell civilian remicon at prices below 78,000 KRW per cubic meter and agreed to apply this from December.

This conduct constitutes an unfair restriction of price competition in the remicon manufacturing and sales market in the Haenam region, violating Article 19, Paragraph 1, Subparagraph 1 and Article 26, Paragraph 1, Subparagraph 1 of the Fair Trade Act.

Additionally, since May 2014, they determined market shares for each company in the Haenam remicon market and, from January 2015 to December 2017, aggregated remicon shipment volumes quarterly and settled surplus and deficit amounts according to the market shares agreed upon in May 2014. After aggregating quarterly remicon shipment volumes, they collected 10,000 KRW per cubic meter from businesses exceeding the agreed market share ratio and paid 7,000 KRW per cubic meter to those below the ratio. The 3,000 KRW per cubic meter difference between surplus and deficit settlements was accumulated and used as membership fees. This is an unfair restriction on the production and shipment of goods in the Haenam remicon manufacturing and sales market, violating Article 19, Paragraph 1, Subparagraph 3 and Article 26, Paragraph 1, Subparagraph 1 of the Fair Trade Act.

Considering that the illegal conduct was stopped during the Fair Trade Commission’s investigation, a prohibition order was issued to prevent recurrence of the same conduct.

A Fair Trade Commission official stated, "This measure detected collusive acts regarding price and market share determination by remicon companies operating in the Haenam region and the Haenam Area Remicon Council, correcting the collusion practices in the area. We will continue to monitor collusive acts among remicon manufacturers and sellers in the remicon market and strictly sanction violations according to law and principles when detected."

This content was produced with the assistance of AI translation services.