Fair Trade Commission uncovers price collusion among 20 ready-mix concrete companies in Namyangju Byeollae District over several years... Fines total 2.511 billion KRW

[Sejong=Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission has decided to impose corrective orders and a total fine of 2.511 billion KRW on 20 ready-mixed concrete (remicon) manufacturers and sellers who colluded on the sales prices of remicon used for commercial buildings, officetels, and detached houses, and also allocated sales volumes in newly developed housing sites in Namyangju City, Gyeonggi Province, and the surrounding areas from 2012 to 2017.

According to the Fair Trade Commission, 17 remicon companies including Sanha Industry, Sampyo Industry, and Wonbang Industry in the Namyangju area agreed to set remicon sales prices at 85% of the standard unit price from 2012 to 2015 and 92% in 2016, from March 2012 to April 2016. These companies repeatedly engaged in such price collusion every March, when remicon demand surged.

In the Byeollae area of Namyangju, Galmae in Guri, and Misaji District in Hanam, 16 remicon companies including Sanha Industry, Sampyo Industry, and Shinil CM colluded on sales prices and allocated sales volumes to restrict bidding competition in newly developed housing sites where remicon demand was concentrated from May 2013 to October 2017.

They agreed to distribute remicon demand in each district according to pre-determined ratios and to allocate more volume to companies located closer to the respective districts.

Furthermore, they agreed to set sales prices at 85% of the standard unit price for remicon used in detached house construction and 80% for remicon used in commercial buildings or officetel construction.

Moreover, to monitor whether the agreement was properly implemented, they formed a surveillance team composed of sales team leaders from each company, who patrolled competitors' construction sites 3 to 5 times a week. They also agreed to impose sanctions by deducting twice the amount of remicon supplied independently by any company caught violating the agreement from the volume allocated to that company in the future.

A Fair Trade Commission official stated, "This action is significant in that it detected and corrected the collusion on sales prices and allocation of volumes over a long period (2012?2017) by remicon manufacturers and sellers holding a 90% market share in the remicon sales market in Namyangju, Guri, and Hanam areas of Gyeonggi Province." He added, "We will continue to strengthen monitoring of collusion in intermediate goods sectors with significant ripple effects across upstream and downstream industries such as construction raw materials, and respond strictly when violations are detected."

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