By Jane Han
Staff Reporter

Just after President Lee Myung-bak took office last year, it seemed as if the nation's antitrust regulator was going to become a toothless tiger in line with his multi-pronged business-friendly policies. But it turned out just the opposite.

With the President largely sustaining his popularity with pledges promising better livelihoods for everyday citizens, the Fair Trade Commission (FTC) is only becoming stricter to make sure that companies don't take advantage of consumers.

In a matter of four months, the regulator simultaneously investigated seven major industries, which it considered were most closely linked to people's spending. Beverage makers, hospitals, gas stations, builders, airlines, soju makers and liquefied petroleum gas (LPG) firms were looked into.

And for them, the results hurt badly.

Cola Cola Korea, Chilsung, Haitai Beverage, Woongjin Food and Donga Ostuka were collectively fined a total of 25.5 billion won in August for sharing information before raising prices.

In September, eight major hospitals were slapped with a fine totaling 3.4 billion won for reaping fraudulent profits from patients through improper management, while 200 gas stations were probed over price-fixing in the same month.

Last month, 14 builders were investigated for allegedly rigging bids for the lucrative four major rivers refurbishment project.

In November, the FTC moved onto probing LPG firms, airline operators and soju makers.

``Clearly, the fair trade regulator is onto something,'' said a representative of the Korea Chamber of Commerce & Industry, a business lobby group, who didn't want to be named.

He said the FTC is doing the hands-on work to realize President Lee's pledges aimed at improving the middle class family's household economy.

``That's great, but companies are facing problems because of stricter regulations,'' the representative added.

Industry insiders say that businesses are becoming increasingly resentful toward the government's ``uptight'' standards, as some say recent price-fixing clampdowns were unfair.

LPG suppliers, for example, argue that their prices ``end up almost the same'' because their product mix and quality are nearly identical.

Such dissatisfaction is leading to a sharp rise in lawsuits charged against the FTC. According to the FTC, 33.3 percent of all companies punished by the regulator have fought back by filing claims.

From January to August, the regulator has coughed up more than 69 billion won.

Despite the noise between businesses and the antitrust agency, observers say the FTC's ramped up role is a positive change.

``Price fixing hasn't been taken seriously enough in Korea compared to other advanced economies,'' said a member of the European Union of Commerce in Korea (EUCCK), who explained that the watchdog's regulating function must be protected to keep the market order in place.

jhan@koreatimes.co.kr