453 million won fine imposed on collaborating stevedoring companies

The Korean Fair Trade Commission (FTC) imposed 453.5 million KRW in fines on six container dedicated terminal operators in the Port of Pusan for collaborating on stevedoring rates.

The Pusan Fair Trade Commission decided to penalize the six operators according to doubts regarding prearranged stevedoring rates, in addition to reforming orders.

According to the FTC press release, the Pusan FTC screened stevedoring rates in ports nationwide to rejuvenate market conditions last year. The FTC discovered that six container dedicated terminal operators in the Port of Pusan conferred with each other on the rates that they reported to MOMAF.

The FTC reported the infraction to the general meeting and deliberated, resulting in 453.5 million KRW in fines and new measures for reform.

By company, the Pusan East Container Terminal (PECT) Co., Ltd was fined 144.4 million won, Hyundai Merchant Marine 142.3 million won, Hanjin Shipping 30.8 million won, Korea Express 45.8 million won, the Global Group 44.7 million won, and the KCTC (Korea Container Terminal Co., Ltd) 45.5 million won.

The FTC decided to discuss the matter with related ministries in order to reform the laws for stevedoring companies so that they can adjust to market conditions more easily.

An official at the FTC revealed that they went through nationwide stevedoring markets for the first time and expected competition to flare up while unfair activities in the market such as prearranged rates were guided to reform.

However, the Korea Harbor Transportation Association said that they were going to raise an objection to the convergence of business opinions.