Korea: Oil Firms Fined W190 Billion for Colluding on Military Bids

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Korea: Oil Firms Fined W190 Billion for Colluding on Military Bids

The Korea Fair Trade Commission (KFTC) announced Friday that it has decided to impose a W190.1 billion fine on five local oil firms. The KFTC handed down the ruling after discovering that SK, S-Oil, Hyundai Oil Refinery, Inchon Oil Refinery and LG-Caltex had colluded to keep prices up when bidding for military aircraft fuel supply contracts since 1998. The firms are expected to appeal the fine, which is the largest fine ever handed down by the government anti-trust watchdog.

The KFTC fined SK, Hyundai Oil and Inchon Oil W47.5 billion each, while S-Oil and LG were each fined W23.8 billion. One high-ranking KFTC official said the five firms supplied a total of W712.8 billion worth of oil to the military since 1998. One high-level official at the Ministry of National Defense (MOND) said the ministry had spent W123 billion more than it should have for its oil purchases as a result of the collusion.

http://www.chosun.com/w21data/html/news/200009/200009290407.html

-- Carl Jenkins (Somewherepress@aol.com), September 29, 2000


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