KFTC Launches Probe Into Alleged Collusion by Chinese Container Makers, Examines Domestic Damage

[Financial News] The Korea Fair Trade Commission (KFTC) is looking into whether collusion by Chinese ship container manufacturers has caused damage to domestic shipping companies.
According to the industry on the 7th, the KFTC has recently been working through the Korea Shipowners' Association to determine the scale of losses suffered by domestic shipping firms due to collusion among Chinese container makers.
The investigation was prompted by the U.S. competition authority's indictment in May of four Chinese container manufacturers, including Singamas and CIMC, on collusion charges.
The U.S. competition authority believes the companies restricted production of standard containers and jointly raised prices from November 2019 to January 2024. It said they cut supply and pushed up prices as container shortages worsened during the COVID-19 pandemic.
According to the U.S. competition authority, container prices roughly doubled between 2019 and 2021 because of the collusion. It also found that the operating profits of the four companies rose sharply over the same period.
Under the Monopoly Regulation and Fair Trade Act (MRFTA), collusion can still be subject to enforcement if it takes place overseas but affects the domestic market or harms a Korean business. If the conduct is found illegal, the KFTC can impose fines and other sanctions.


hippo@fnnews.com Kim Chan-mi Reporter