FTC sanctions five makers of farming equipment

Korea’s antitrust agency has taken disciplinary measures against five domestic agriculture equipment manufacturers for price collusion.

The Fair Trade Commission said Monday it would levy combined fines of some 23.5 billion won ($2110 million) against the five for price fixing products such as combine harvesters, rice planters and tractors.

The five companies are: Kukje Machinery, Daedong, Tongyang Moolsan, LS, and LS Mtron.

Of the five, the FTC will also seek to have four ― Kukje Machinery, Daedong, Tongyang Moolsan and LS Mtron ― prosecuted for fixing bidding prices to win orders, as well as for colluding on setting tire prices for their equipment.

The antitrust agency said it found that executives of the five companies regularly met between 2002 and 2011 to share information before setting the prices of their equipment amid fierce competition.

Also, the four companies that will be prosecuted reportedly colluded in submitting their bids to win equipment rental business orders from the country’s agricultural cooperative federation ― Nonghyup ― in 2010.

They also allegedly fixed and raised prices of their tires for their agriculture equipment three times between 2009 and 2011. Those tires were being supplied to retail agents for maintenance and after-sales services.

By Park Hyong-ki (hkp@heraldcorp.com)