Fair Trade Commission: "Ulsan Remicon Business Association, Price Rate Increase and Factory Shutdown... Corrective Order and Fine"

[Sejong - Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 15th that it has issued a corrective order (including a future prohibition order and a notification order to member businesses) and imposed a fine of 5 million KRW on the Ulsan Remicon Business Association for raising the Remicon sales price rate to 82% of the standard price and for halting factory operations.

According to the Fair Trade Commission, the association decided in March 2017 to raise the Remicon sales price rate supplied to the Ulsan area to 82% of the standard price. In April of the following month, the association visited eight first-tier construction companies based in Seoul to request an increase in the sales price rate, and both parties agreed to raise the rate from the previous 76% to 79.5%.

When the first-tier construction companies showed a lukewarm response to the request for an increase in the Remicon sales price rate, the association decided and executed a shutdown of operations at 16 Remicon manufacturing plants in the Ulsan area for three days from April 20 to 22, 2017.

A Fair Trade Commission official stated, "The association’s increase of the Remicon sales price rate and the factory shutdown unjustly restricted price competition and business activities in the Ulsan Remicon sales market," adding, "It is expected that competition order will be established and illegal activities prevented by allowing autonomous determination of Remicon sales prices and business activities in the Ulsan area."

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