The Fair Trade Commission's W105.1 billion fine on 10 South Korean petrochemical companies, for price rigging has spread panic and distrust through the petrochem industry. The firms are blaming each other and disparaging those that escaped heavier penalties.
A system adopted in 2004 reduces or exempts companies from fines or punishment if they voluntarily report price fixing. In line with this system, Honam avoided a hefty fine as it was the first company to report the scheme to the watchdog. As the second reporter, Samsung Total received a 30% fine reduction. Hence, among the 10 firms, Honam Petrochemical Corp. and Samsung Total received the lightest fines.
It seems as though Honam not only benefited from the price-rigging scheme for 11 years, but by being the first to blow the whistle, it has eluded responsibility for it. However, none of the companies are in a position to openly complain about the softer punishments because all of them calculated the situation and then sought to cooperate, once the investigation began moving, they rushed to cooperate.
22-Feb-07 
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