FTC Fines 15 Financial Firms over 1.6 Trillion Won for Bond Auction Collusion
[Economy] : The Fair Trade Commission(FTC) has decided to impose more than one-point-six trillion won in fines on 15 domestic financial firms for colluding in the government bond bidding process for years. The FTC announced on Wednesday that it levied fines and corrective orders on five banks and 10 brokerages ... [more...]
South Korea's Fair Trade Commission (FTC) has imposed fines totaling more than 1.6 trillion won ($1.2 billion) on 15 domestic financial firms for colluding during government bond auctions. According to KBS World Radio, the penalty and corrective orders involve five banks and 10 brokerages.
CNA - Business reports that the collusion occurred over more than three years, specifically from January 2020 to June 2023. During 150 government bond auctions, the 15 primary dealers exchanged information regarding bidding yields via telephone or the Telegram messaging app just one or two minutes before deadlines. In 145 of these auctions, the firms directly agreed on bidding yields and volumes.
The FTC stated that these activities caused an artificial rise in South Korean bond yields. The commission expects the penalties to increase the efficiency of national fiscal management and foster effective competition in bond auctions, according to CNA - Business.
Brief written by urgent.news from KBS World Radio, CNA - Business, Channel News Asia — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- South Korea fines 15 bond dealers 1.6 trillion won for collusion channelnewsasia.com
- Korea Fines Bond Dealers Record $1.2 Billion Over Collusion bloomberg.com
