Korea's FTC fines 15 financial firms over government bond collusion

The Fair Trade Commission imposed 1.62 trillion won ($1.2 billion) in fines on 15 financial companies in Korea. These firms, which included 10 brokerage houses and 5 banks, were fined for colluding in government bond auctions between January 2020 and June 2023. The watchdog found that the companies exchanged information on bidding yields and volumes, sometimes reaching agreements on specific yields or volumes in 145 of the auctions.

The collusion is significant because government bonds serve as a benchmark for pricing other financial products and determining interest rates. The FTC noted that establishing appropriate prices in this market is key to supporting the efficiency of the overall financial market and government finances. This action marks the largest fine ever imposed by the Fair Trade Commission in a single case.