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Photo = Fair Trade Commission |
[Alpha Biz= Kim Jisun] South Korea’s Fair Trade Commission (KFTC) has launched an investigation into suspected collusion in the paint industry, following a series of price hikes justified by rising raw material costs linked to Middle East tensions.
According to industry sources on March 30, the KFTC dispatched investigators to the headquarters of five major paint manufacturers—KCC, Noroo Paint, Samhwa Paint Industrial, Kangnam Jevisco, and Chokwang Paint—as well as the Korea Paint & Ink Industry Cooperative. The on-site inspections are aimed at determining whether unfair trade practices occurred during the recent wave of price increases.
The regulator is closely examining whether companies engaged in coordinated actions when raising prices. Under the Monopoly Regulation and Fair Trade Act, businesses are prohibited from colluding—through agreements or tacit coordination—to fix, maintain, or alter prices in ways that restrict fair competition.
If found guilty of illegal collective actions, companies may face corrective orders and administrative fines. In addition, criminal penalties may apply, including imprisonment of up to three years or fines of up to KRW 200 million.
Industry data shows that Noroo Paint and Samhwa Paint Industrial raised product prices by 20% to 55% starting March 23. KCC has notified distributors and partners of planned price increases of 10% to 40%, effective April 6, while Kangnam Jevisco is set to raise prices by more than 15% starting April 1.
Paint manufacturers have cited rising raw material costs—particularly naphtha-based inputs—as the primary reason for the price adjustments.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
