Fines levied for corporate offenses down sharply in 2008

SEOUL, April 5 (Yonhap) -- Fines levied on anti-trust corporate violations fell
sharply last year amid government efforts to implement "business friendly"
policies to boost the sagging economy, a state report said Sunday.
The Fair Trade Commission (FTC) said it slapped 272 billion won (US$203.2
million) worth of fines on companies, down 35.8 percent from the year before.
It said of the total, 54.2 billion won was for violations detected by
petrochemical companies, followed by 47.7 billion won levied on local elevator
businesses.
The corporate watchdog also took action against insurance companies, banks and
film producers for breaking the country's fair trade law.
By type of violation, the FTC detected 56 cases of illegal cartel activity that
directly affected ordinary consumers. Of the total, companies found to have
engaged in cartel activities were ordered to pay 205.3 billion won worth of
fines, with 26.6 billion won imposed for monopoly activities.
The state regulator, meanwhile, said that while it handled 4,556 cases for a gain
of 1.7 percent from the year before, the number of violations that received
administrative reprimand or higher penalties fell 4.8 percent on-year to 3,070
cases.
The FTC did not elaborate on the sharp drop in fines levied last year, although
the incumbent Lee Myung-bak administration has stressed the need to create an
environment that is conducive to investment, hiring and production.
Lee, a former head of Hyundai Engineering and Construction Co. who took office in
Feb. 2008, said he would ax unnecessary red tape and restrictions that have been
cited by entrepreneurs as holding up investment.
yonngong@yna.co.kr
(END)