By Kim Hyun-cheol
Staff Reporter

Makers of soju, South Korea's popular alcoholic drink, have been slapped with a 226.3-billion-won ($196.1 million) fine for price rigging, the nation's fair trade agency said Wednesday.

Eleven local manufacturers of the Korean distilled liquor are subject to the punitive action, according to the Fair Trade Commission (FTC).

Those companies have allegedly been colluding with each other to raise soju prices since 2006, the FTC said.

Jinro, the largest soju maker, was hit with the biggest fine of 116.2 billion won, while Doosan trailed with a 24.6-billion-won fine. Major provincial spirit makers are also subject to the fine. They include Daesun in Busan and Kumbokju in Daegu, which received fines of 20.6 billion won and 17.2 billion won, respectively.

The FTC slapped a 9.9-billion-won fine on Lotte Liquor BG, which took over Doosan's soju brand this March. The size of exact fines will be finalized next month after reviewing appeals from the involved makers.

Resistance, however, is likely to be strong this time even though the FTC says it has solid evidence to prove the charge.

The Korea Alcohol & Liquor Industry Association (KALIA) has delayed presenting its written opinion to gather more information.

Fined producers are obliged to submit their opinion notes within two weeks after receiving the investigation report. They can seek a court appeal if they are not satisfied with the FTC decision.

Spirit makers claim levying the fine is unfair in consideration of the current system for setting soju prices.

Normally, Jinro gets instructions on raising prices from the National Tax Service and the remaining firms follow that "guideline," according to KALIA. In that regard, soju distillers naturally go through a fine-tuning process with the government because it is impossible for other companies to set their price higher than Jinro, which takes up nearly 50 percent of the domestic market, the association said.

"The fines have been unfairly imposed and are too heavy for a lot of distillers. If the FTC sticks to such actions, all of the provincial soju makers will have to go under in the end," a KALIA official said on condition of anonymity.

hckim@koreatimes.co.kr