Korean authorities fine Marine Hose cartel participants

ERJ staff report (DS)

Seoul -- The Korea Fair Trade Commission("KFTC") has imposed a corrective order and a total of 557-million-Won (euro 326 000) surcharge on five Marine Hose manufacturers. it is the first time the KFTC has imposed sanctions on members of a cartel

KFTC issued a statement saying "Bridgestone, Dunlop Oil & Marine, Trelleborg, Parker ITR and Manuli engaged in a cartel to rig bids, fix prices and allocate market shares of marine hose sold in Korea and elsewhere from at least 1999 through 2006." KFTC said Yokohama Rubber also engaged in the cartel but was not fined because it disclosed the cartel to the KFTC under the leniency program.

The KFTC found that in or about 1999, five companies except Manuli restored the so-called "Marine Hose Club” which dated back to at least 1986. Manuli rejoined the Club in 2000.

These six companies manufacture and sell marine hose throughout all over the world. They accounted for 95% of marine hose sold all over the world and 100% in Korea. Five oil refining companies - Korea National Oil Corporation, SK energy Corporation, Hyundai Oilbank Corporation, S-Oil Corporation, GS Caltex Corporation - were damaged by the cartel.

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Press release listing from KFTC