Price Fixing Detected in Zinc Coated Steel Wire... Five Steel Companies Fined 6.5 Billion Won

[Financial News] The Korea Fair Trade Commission (KFTC) announced on the 21st that it has issued corrective orders and imposed a total fine of 6.549 billion won on five steel companies for colluding on the prices of four types of steel intermediates, including Zinc Coated Low Carbon Steel Wire.
The companies subject to sanctions are Hankuk Steel Wire, Dae-A Steel Wire, Cheongwoo Steel, HANIL IRON & STEEL, and Jinheung Steel.
According to the KFTC investigation, from December 2016 to February 2022, these companies prearranged the selling prices of four products: Zinc Coated Low Carbon Steel Wire, zinc-coated steel wire, annealed wire, and heat-treated wire.
Whenever raw material prices increased, the companies jointly raised product prices. Conversely, even when costs fell, they maintained existing prices, effectively abandoning price competition.
During the collusion period, they raised product prices on ten occasions, increasing prices by 50 to 200 won per kilogram. As a result, some products saw price hikes of up to 63.4%.
The KFTC pointed out, "Company executives and sales staff held regular meetings to coordinate the timing and scale of price increases. Each company then notified clients of the changes either in writing or verbally."
Zinc Coated Low Carbon Steel Wire and related products are steel intermediates used in various industries, including fences, power cables, and automotive cables. The KFTC assessed that this collusion could trigger a chain reaction of price increases across the market, highlighting the significant impact of these measures.
A KFTC official stated, "This sanction is a case of uncovering price collusion in the intermediate goods industry, exploiting fluctuations in raw material prices. It will help improve collusive practices and establish fair competition going forward." The official added, "We will continue to strengthen monitoring of the intermediate goods sector and respond strictly to any violations of the law."

imne@fnnews.com Hong Ye-ji Reporter