FTC begins deliberations on lubricant makers' price-fixing case

The Fair Trade Commission's logo is seen in this file photo / Korea Times file

South Korea's fair trade watchdog said Tuesday it has begun deliberations on 10 local lubricant makers over allegations that they engaged in price-fixing.

The Fair Trade Commission (FTC)'s move came after its investigation concluded that the companies had fixed lubricant prices from January 2018 to October 2024, with sales affected by the alleged price-fixing estimated at 2.02 trillion won ($1.31 billion).

The affected products include metalworking fluids used in cutting, grinding and other metalworking processes, as well as industrial lubricants used in machinery and equipment. The 10 companies account for 80 percent and 21 percent of the respective markets.

"The companies colluded to raise prices whenever raw material costs increased, including during the Russia-Ukraine war and the COVID-19 pandemic," an FTC official said.

Through the deliberation process, the FTC may impose fines of up to 20 percent of the related sales.

The FTC said it plans to call on companies to submit written opinions within eight weeks, after which it will move to issue a final ruling as promptly as possible.