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South Korea: KFTC punishes Japanese, German auto parts firms over price fixing

By  |  June 26, 2017

Japanese and German bearing manufacturers have faced fines totaling 2 billion won (US $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 Korean Fair Trade Commission (KFTC), 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 KFTC 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.

Full Content: Korean Herald

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