The South Korea Fair Trade Commission pointed out that 23 shipping companies including Evergreen, Yang Ming, and Wan Hai were suspected of jointly operating illegal freight rates on multiple routes from South Korea to Southeast Asia in the past 15 years. Today, the Fair Trade Commission fined a total of 96.2 billion won (approximately NT $ 2.44 billion yuan). The fined shipping companies include 12 South Korean companies and 11 foreign companies from Taiwan, Singapore and Hong Kong. The Taiwanese companies involved in the case include CNC, Evergreen Shipping, Wan Hai Shipping and Yang Ming Shipping, each of which was fined 1.169 billion (approximately NT$2964). 10,000 yuan), 3.399 billion yuan (approximately NT$86.19 million), 11.51 billion (approximately NT$290 million), and 2.419 billion won (approximately NT$61.34 million). In this regard, Evergreen and Wan Hai stated that they have not received official written information, while Yang Ming confirmed that this is true and will appeal in accordance with the law.
The South Korea Fair determined that these 23 operators had conducted a total of 120 operations on the import and export routes between South Korea and Southeast Asia from December 2003 to December 2018. And conceal violations of the Fair Trading Act.
According to the investigation by the Fair, the freight rate operation was initially carried out by major international shipping companies in South Korea such as Korea Shipping, Jangjin Merchant Shipping and other major international shipping companies in South Korea at the same time increasing the freight rates for routes from South Korea to Southeast Asia, mainland China and Japan. The foreign businessmen under the organization (IADA) also joined the ranks of operating tariffs later.
The investigation report pointed out that the operators involved in the case would negotiate with each other regarding the amount of large-scale or main bids, and agreed not to snatch the goods from each other. In addition, in addition to 23 ocean carriers, the Association of Southeast Asian Shipping Companies, which assists in black box operations, was also fined 165 million won.
Wan Hai said that he has not received a written notice from the competent authority and has not responded yet; Evergreen said that it has not yet received the punishment letter from the South Korea Fair, and the relevant information and the content of the punishment are yet to be clarified. After receiving the relevant information, the follow-up will be discussed. The director of Yang Ming confirmed that this matter is true, but the amount is not final, and Yang Ming will appeal in accordance with the law.
According to the analysis of freight forwarders, South Korea is export-oriented. Unsmooth shipments and high freight rates have greatly increased the pressure on the operators. It is estimated that the operators collectively reported to the South Korea Fair. However, it is “probably difficult” for the South Korean Fair to prove the suspected joint monopoly of the shipping company, and the final result remains to be seen.
This is the first time that the South Korea Fair will actually impose fines on shipping companies including South Korean operators. However, the fair review committee originally suggested a maximum fine of 800 billion won, but the final fine was only 96.2 billion won, which is one-eighth of the level. The punishment for being questioned is too light. The Fair said that this decision was made following listening to the opinions of relevant ministries and committees and considering the characteristics of the industry. The South Korean Shipping Association issued a statement regretting the decision and said it would file an administrative lawsuit.
Responsible editor: Yu Weining
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