Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
FTC punishes Japanese, German auto parts firms over price fixing
By Park Jae-hyuk
Japanese and German bearing manufacturers have faced fines totaling 2 billion won ($1.7 million) for collusion, the nation’s antitrust watchdog said Monday.
In response to Korean auto-part makers’ attempts to cut costs by diversifying their suppliers, the global manufacturers have avoided competition by fixing their bearing prices through telephone calls and face-to-face meetings between executives.
According to the Fair Trade Commission (FTC), Tokyo-based NSK and Osaka-based JTEKT agreed in 2002 to fix the prices of their bearings used for Hyundai Santa Fe and Tucson SUVs by the end of 2009.
The FTC also revealed non-aggression treaties among the four manufacturers ─ NSK, JTEKT, NSK’s Korean affiliate and German-based Schaeffler Group’s Korean unit. The two local subsidiaries are 100 percent owned by their global headquarters.
NSK, JTEKT and Schaeffler Korea agreed in 2006 not to invade each of their markets until January 2009. In addition, NSK, NSK Korea and Schaeffler Korea promised in 2008 not to intervene in each of their markets until August 2011.
To keep these promises, the companies supplied different types of bearings to Korean auto-part makers, according to the FTC.
The FTC fined Schaeffler Korea 833 million won, NSK 584 million won, JTEKT 533 million won and NSK Korea 71 million won.
“We expect the latest restriction on global collusion will prevent consumer damages and enhance the competitiveness of the domestic automotive industry,” an FTC official said. “The FTC will continue to monitor to tackle global collusion, regardless of the nationality of the enterprises.”
The FTC said Korean vehicle manufacturers are highly dependent on imports of high-quality bearings. The FTC had also fined global bearing manufacturers in 2014 and 2015 over collusion.