Why Did the FTC Fine 48 South Korean Furniture Firms?
Synopsis
In a significant crackdown, South Korea's FTC has fined 48 furniture manufacturers a collective 25 billion won for colluding in built-in furniture bids. This widespread collusion affected 240 bidding processes across 54 construction firms, with major penalties imposed on top companies. Read on to discover the implications of these actions on the industry.
Key Takeaways
FTC fines: 25 billion won imposed on 48 firms.
Collusion period: September 2013 to May 2022.
Major penalties: Enex Co. fined 5.84 billion won.
Broad impact: Affected 240 bidding processes across 54 companies.
Importance of compliance: Reinforces fair competition principles.
Seoul, Dec 29 (NationPress) The Fair Trade Commission (FTC) announced on Monday that it has imposed fines on 48 furniture manufacturers and suppliers due to alleged collusion in the bidding process for built-in furniture ordered by construction firms.
The total penalties amount to 25 billion won (approximately US$17.4 million) for collusion activities that occurred between September 2013 and May 2022, as reported by Yonhap news agency.
The FTC highlighted that the collusion was extensive, impacting 240 bidding processes initiated by 54 construction companies.
Enex Co. will incur the highest fine of 5.84 billion won, followed by Hanssem Co. with a penalty of 3.8 billion won, as stated by the FTC.
Built-in furniture includes fixtures like kitchen cabinets and closets that are installed within apartments and offices during construction.
In another development, Coupang, a prominent e-commerce entity in South Korea, has been subjected to the largest fines from the FTC among conglomerates in the past three years, according to a parliamentary report.
The report, compiled by the FTC and presented to Rep. Choo Kyung-ho of the main opposition People Power Party, indicates that Coupang faced fines totaling 162.8 billion won (about US$114.3 million) from the first half of 2022 to the first half of this year.
Last year, the FTC penalized the company for manipulating search algorithms to enhance the “Coupang ranking” of its own products.
Following Coupang, Hyundai Motor Group faced cumulative fines of 119.4 billion won, with Harim Group at 101.6 billion won and SK Group at 64.5 billion won.
Over the three-year span, the top 10 conglomerates accumulated a total of 744.6 billion won in fines.
Hyundai Department Store Group recorded the highest number of violations, totaling 38, primarily linked to multiple collusion cases involving its furniture subsidiary, Hyundai Livart Furniture.
Following closely, Hanssem Co. had 33 violations, with SK Group at 31 and Enex Co. at 28. Collectively, the top 10 companies breached antitrust laws 243 times during this period.
Point of View
It is crucial to recognize the FTC's decisive actions to uphold fair market practices in South Korea. The penalties imposed on these furniture manufacturers serve as a vital reminder that collusion undermines competitive integrity, ultimately harming consumers and the economy. This proactive stance by the FTC reinforces the importance of transparency and fairness in the business landscape.
NationPress
21 Jun 2026
Frequently Asked Questions
What is the total fine imposed by the FTC?
The FTC has imposed a total fine of 25 billion won (approximately US$17.4 million) on the 48 furniture manufacturers.
What were the collusion activities related to?
The collusion activities were related to predetermining winning bidders or bid prices for built-in furniture ordered by construction companies.
Which company received the largest penalty?
Enex Co. received the largest penalty of 5.84 billion won.
How many bidding processes were affected?
The collusion occurred in 240 bidding processes initiated by 54 construction companies.
What is built-in furniture?
Built-in furniture refers to fixtures like kitchen cabinets and closets installed within apartments and offices during construction.
