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South Korea to Sharply Raise Fines for Price-Fixing and Unfair Trade Practices

By  |  January 4, 2026

South Korea’s government announced Tuesday that it will significantly increase financial penalties for companies found colluding to fix prices or engaging in other unfair trade practices, part of a broader effort to strengthen economic law enforcement and deter misconduct.

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    Under the tightened rules, businesses caught coordinating prices or charges could face fines of up to 10 billion won, equivalent to about $6.97 million, according to a statement released after the announcement. This represents more than double the current maximum penalty of 4 billion won.

    The new framework also targets abuses of power in subcontracting relationships. Contractors that use their dominant position to interfere with or control subcontractor operations may now be fined as much as 5 billion won, per a statement from the government. That figure is ten times higher than the existing limit, signaling a tougher stance on practices seen as undermining fair competition.

    The revised penalties were finalized during a policy meeting between the government and the ruling Democratic Party of Korea on Tuesday. The meeting marked the second phase of an initiative aimed at overhauling economic crime penalties to make them more equitable and effective, according to a statement summarizing the discussions. A first round of reforms was held in September.

    Read more: South Korea Indicts 13 in Major Sugar Price-Fixing Case

    Officials said the changes reflect President Lee Jae Myung’s concerns that current fines are too small to meaningfully deter large and wealthy corporations. During briefings earlier this month, Lee emphasized that sanctions for violations of fair trade laws should be severe enough to pose a real financial threat to offending companies, according to a statement from government sources familiar with the discussions.

    In designing the new system, the government looked to international examples. Authorities explained that the revised rules were modeled on penalty structures used in the European Union and Japan, where fines can reach up to 30 percent and 15 percent of a company’s sales, respectively, per a statement outlining the policy rationale.

    At the same time, the reforms are intended to introduce more flexibility for less serious cases. Minor, unintentional violations or administrative oversights will be handled through administrative fines rather than criminal charges, according to a statement. Such cases will not result in a criminal record, a move officials say is meant to balance tougher enforcement with fairness.

    Source: Korea Times