South Korea Fines 15 Treasury Bond Dealers Record 1.6T Won for Collusion

Key Facts

The South Korea Fair Trade Commission imposed total fines of 1.6266 trillion won on 15 primary dealers specializing in treasury bonds. Maeil Business Newspaper reported that the regulator found the dealers colluded on bid rates and quantities in government bond auctions between 2020 and 2023. The investigation revealed that information regarding bid rates was exchanged and interest rates were manipulated in 150 out of 345 examined auctions.

This penalty represents a record-breaking enforcement action by the antitrust regulator, targeting practices conducted during a period of significant market volatility. The fines have already impacted the financial results of major institutions; KB Financial Group corrected its third-quarter consolidated net profit to a deficit of 59.1 billion won to reflect the penalty, while Kiwoom Securities saw its third-quarter net profit drop to 178.8 billion won after accounting for an 83.8 billion won fine.