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Photo = Meritz Fire & Marine Insurance |
[Alpha Biz= Paul Lee] The Korea Fair Trade Commission (KFTC) has launched an on-site investigation into South Korea’s non-life insurance sector over allegations of collusion in group accident insurance tenders.
According to industry sources on May 26, the KFTC recently dispatched investigators to eight major insurers, including Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, DB Insurance, KB Insurance, Hanwha General Insurance, NH NongHyup General Insurance, Heungkuk Fire & Marine Insurance, and Hyundai Marine & Fire Insurance, to secure relevant documents.
Under South Korea’s Fair Trade Act, agreements among businesses to predetermine prices, output, or transaction terms are strictly prohibited. The law also bans bid-rigging practices such as pre-arranging winning bidders, “cover” bidders, or bidding prices in tender and auction processes.
The KFTC is reportedly examining suspicions that insurers coordinated bids in the group accident insurance market, potentially violating antitrust regulations.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
