Gov't, ruling party vow harsher sanctions on companies over collusive practices

SEOUL, September 28 (Yonhap) - The South Korean government and ruling Democratic Party pledged to introduce stricter sanctions against corporations engaging in collusive practices, according to a meeting of party officials. The ruling party, led by Deputy Chair Min Byoung-dug, plans to amend the Fair Trade Act and 17 sector-specific laws to target price fixing and bid rigging in key industries such as safety, energy, and transportation.

Min explained that the new system would enable revocation of business registrations or suspension of operations for companies found guilty of collusive activities. The government also intends to extend the statute of limitations for sanctions against such practices.

Fair Trade Commission head Ju Biung-ghi emphasized that collusion undermines the market economy's foundation and seeks unjust profits at the expense of consumers and other economic players. Kwon Chil-seung, chair of the DP policy committee, warned that the market must be made aware that the cost of collusion outweighs the benefits it generates.