South Korea's antitrust regulator said Monday that it has fined two companies a combined 5.1 billion won (US$4.3 million) for colluding to fix their process oil bidding prices for petrochemicals firm Kumho Petrochemical.
Michang Oil Ind. Co. and Brico International colluded to fix quotations on Treated Distillate Aromatic Extract to be submitted to Kumho Petrochemical on 13 occasions between November 2011 and March 2015, according to the Fair Trade Commission.
The two companies followed through on their price fixing as previously agreed upon to secure a stable quantity of process oil and improve their profitability.
Process oil is used in making tires and other rubber products.
The South Korean market for process oil was estimated at around 64 billion won in 2018. South Korea relies entirely on imports for its process oil needs. (Yonhap)