Samsung, LG and others fined $40 million in Korean price-fixing scam

Korean regulators on Thursday fined domestic mobile phone manufacturers and carriers 45.3 billion won (roughly $40.2 million) for price-fixing and consumer fraud. According to the Fair Trade Commission, the companies secretly agreed to inflate the prices of cell phones while advertising offers with considerable incentives. The companies’ actions apparently tricked consumers into thinking they were buying a new phone for a bargain. “Companies took advantage of the complicated price setting practice in the mobile telecommunications sector to trick consumers,” an FTC official said. The Korea Times reported that Samsung, LG, Pantech, SK Telecom, KT and LG Uplus have all been find for their role in the scheme. In addition to the fine, the companies have been ordered to release information concerning the incentives they offered consumers, and they have been banned from offering such incentives in the future. SK Telecom was given the largest fine of 20.2 billion won, followed by Samsung with 14.2 billion won and KT at 5.1 billion won.

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