Justice Minister Jeong Seong-ho: "Price-fixing that is still profitable even when caught? Individuals must also be punished"

Justice Minister Jeong Seong-ho argued that there must be strong criminal penalties for individuals involved in corporate price-fixing that distorts prices.
On the 6th, Jeong wrote on his Facebook page, "Following President Lee Jae-myung's recent directive, intensive investigations by prosecutors have uncovered large-scale collusion in the daily necessities sector and in bidding for Korea Electric Power Corporation (KEPCO) projects."
According to him, in the flour market alone, collusion worth about 6 trillion won took place over five years, and in the sugar market, about 3 trillion won over four years. In KEPCO bidding, collusion amounted to around 600 billion won, pushing some prices up by as much as 66 percent, with the burden ultimately shifted onto the public.
Jeong criticized, "These companies have repeatedly been caught in the past for similar collusion, yet they continued doing the same thing," adding, "It shows that lawbreakers have treated the public and the rule of law with contempt and viewed collusion as a deal that is still profitable even when they are caught."
He stressed that penalties must be strengthened not only for corporations but also for the individuals responsible.
Jeong stated, "To eradicate organized collusion that distorts prices and toys with people's livelihoods, we must, like the United States, drastically toughen criminal punishment for individuals such as executives, employees, and behind-the-scenes actors who plan and carry out collusion." He added, "We still rely mainly on corporate fines, and the Korea Fair Trade Commission's criminal referrals of individuals are made only in limited cases."
He also noted that the statutory maximum sentence for corporate collusion in Korea is only up to three years in prison, far lower than in other countries, where it can reach up to 14 years in Canada and up to 10 years in Australia and the United States. The statute of limitations is also short. Jeong said that institutional reforms are needed, including overhauling the leniency (self-reporting) program.
Jeong added, "The Ministry of Justice will actively communicate with the National Assembly and relevant ministries to push for institutional changes," and continued, "We must make sure that collusion is no longer seen as 'a deal that is still profitable even when you are caught,' but as something that makes people think, 'If I collude, it will ruin both my company and my own life.' Only then can we stop unfair practices and protect people's livelihoods."
hwlee@fnnews.com Lee Hwan-joo Reporter