Seoul: South Korea's fair trade watchdog on Wednesday imposed a combined fine of 3 billion won (US$2.23 million) on six paper manufacturers for rigging supply tenders held by an agricultural newspaper. The Fair Trade Commission (FTC) found that the companies colluded in bids conducted by the Farmers Newspaper, a significant agricultural publication, spanning from 2021 to 2025. The firms pre-arranged the winners, bid prices, and even which companies would submit intentionally losing bids.

According to Yonhap News Agency, the FTC revealed that the companies had been manipulating printing paper prices and extended this scheme to the newspaper's bids, curbing competition to ensure winning bids remained above a particular threshold. Throughout the collusion period, winning bids averaged approximately 96.2 percent of the estimated contract prices, reaching a peak of about 99.4 percent. This contrasts with an average of 87.6 percent from 2018 to 2020, a period when there was no collusion.

The FTC highlighted that the six companies gained financial advantages through these arrangements. The watchdog has pledged to continue observing the paper industry for price-fixing activities and to take firm action against any violations in line with the law. Furthermore, the FTC has decided to refer two of the involved companies to prosecutors for further investigation.