FTC launches probe into price rigging by beverage firms

SEOUL, March 9 (Yonhap) -- South Korea's antitrust watchdog said Monday it has
launched a probe into the nation's major beverage manufacturers on allegations
they have been involved in price rigging.
Under investigation are Lotte Chilsung Beverage, Coca Cola Korea, HAITAI Beverage
and Donga-Otsuka, among others, according to the Fair Trade Commission (FTC). The
full list of suspected firms was not disclosed.
The probe, which was launched in late February, comes as criticism mounts that
some local producers are raising prices for their products. The firms counter
that the sliding won's value has driven up the overall cost of importing raw
materials.
The won has fallen around 20 percent against the U.S. greenback since the
beginning of this year.
The government has recently become more concerned that inflation could hamper
widening economic stimulus efforts being made to avert what would be the first
recession in more than a decade.
In February, consumer prices jumped 4.1 percent from a year earlier, accelerating
from a 3.7 percent on-year advance the previous month. This marked the first
upturn in seven months since inflation reached a 10-year high of 5.8 percent in
July last year.
"We are closely monitoring those companies which excessively raised product
prices citing the won's plunge or retained the price level despite a drop in
international raw material costs," an FTC official said.
kokobj@yna.co.kr
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