FTC to fine 15 firms $1.2 bil. for rigging gov't bond bids

Korea's fair trade watchdog said Wednesday it has decided to impose 1.62 trillion won ($1.2 billion) in fines on 15 financial companies for colluding in government bond auctions for more than three years. The Fair Trade Commission (FTC) said the firms, all primary dealers comprising 10 brokerage houses and five banks, exchanged information on bidding yields and volumes through phone calls and messaging apps regarding 150 auctions between January 2020 and June 2023. It marked the largest fine ever imposed by the FTC in a single case, surpassing the previous record of 1.03 trillion won levied on Qualcomm for unfair practices in 2016. In 145 of those auctions, the companies went beyond exchanging information to reach agreements on specific bidding yields or volumes, constituting bid rigging, the watchdog said. "Dealers in charge of bidding at the 15 companies exchanged information on bidding volumes or yields on auction days, routinely engaging in collusion, with agreements sometimes reached within seconds," the FTC said. The watchdog noted such collusion constitutes a serious violation as g