FTC to fine 15 firms $1.2 bil. for rigging gov't bond bids
Korea's fair trade watchdog said Wednesday it has decided to impose 1.62 trillion won ($1.2 billion) in fines on 15 financial companies for colluding in government bond auctions for more than three years. The Fair Trade Commission (FTC) said the firms, all primary dealers comprising 10 brokerage houses and five banks, exchanged information on bidding yields and volumes through phone calls and…
The Korea Fair Trade Commission announced on Wednesday that it will impose a total of 1.62 trillion won, equivalent to $1.2 billion, in fines on 15 financial institutions for engaging in collusion during government bond auctions spanning over three years, from January 2020 to June 2023. The Fair Trade Commission highlighted that these 15 companies, comprising 10 brokerage houses and five banks, collaborated by exchanging information about bidding yields and volumes through phone calls and messaging apps.
This action marks the most substantial fine ever imposed by the FTC in a single case, eclipsing the previous record of 1.03 trillion won set against Qualcomm for unfair practices in 2016.
In the majority of the 145 auctions where firms participated, the companies went a step further to reach explicit agreements regarding bidding yields or volumes, which the watchdog classified as bid rigging. The collusion among dealers in charge of bidding at these 15 companies was routine, often culminating in agreements forged within seconds. The FTC emphasized that such collusion represents a severe violation, particularly in the context of government bond auctions.
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- FTC to fine 15 firms $1.2 bil. for rigging gov't bond bids koreatimes.co.kr
