Korea targets sanitary pad makers over pricing practices

Fair Trade Commission Chairman Ju Biung-ghi answers questions from President Lee Jae Myung during a policy briefing at Government Complex Seoul, Dec. 19. Yonhap

Korea is initiating a regulatory push against major sanitary pad makers amid concerns over a possible oligopoly.

They are suspected of engaging in unfair price-fixing practices by abusing their dominant market position. The Fair Trade Commission (FTC) is also investigating whether the companies set excessively high prices for their products.

The FTC investigation follows President Lee Jae Myung’s order issued during a policy briefing by the antitrust authority last week, when he took issue with the “relatively expensive” prices of sanitary pads in Korea compared with those in other countries.

According to a 2023 report published by the Korean Women’s Environmental Network, the average sanitary pad price in Korea was about 40 percent higher than their overseas counterparts. The organization compared the prices of 510 sanitary pad products from Korea with 69 others from 11 major developed countries, including the United States and Japan.

Models pose for a sanitary pad donation campaign by Yuhan-Kimberly in this 2021 photo. Yonhap

Korean consumers largely echoed this sentiment, as many rely on products from the top three makers — Yuhan-Kimberly, LG Unicharm and Kleannara — due to their wide availability.

“Most customers rely on products from these companies because they are easily accessible online and at convenience stores nationwide,” said an office worker in her 20s. “The limited number of reliable suppliers makes it harder to find alternatives, and many young consumers perceive the prices of these widely available pads as relatively expensive.”

Another woman in her 30s expressed regret that most customers cannot easily purchase reusable or eco-friendly sanitary pads at a reasonable price here, unlike in other countries.

“Demand for pads made with diverse, eco-friendly materials looks strong from young customers, but most of these products are sold at a very expensive price here,” she said. “This pushes them to resort to products from the so-called big three firms.”

The FTC is investigating whether the three companies abused their market influence by unfairly raising product prices, and will monitor how they set prices for their products. It declined to comment on details of the ongoing investigation, which is expected to take at least several months to complete.

“We cannot share anything about the investigation due to an internal rule,” an official from the antitrust watchdog said.

If the authority secures evidence of unfair business practices, the companies could be ordered to take corrective measures or face fines. President Lee has also expressed strong willingness to support the FTC’s investigation into the sanitary pad makers.

Officials from the companies said they will comply with the investigation by the FTC.

“We will sincerely cooperate with the investigation in accordance with the law and principle,” an official from Kleannara said.

In 2016, the FTC launched a similar investigation into major sanitary pad makers. At that time, Yuhan-Kimberly’s pad prices were found to have increased 19.7 percent between 2010 and 2017, but the authority closed the investigation without imposing sanctions, concluding that the price increase did not significantly surpass the rise in raw material prices during the same period.