Business · Companies · 40 mins ago
South Korea fines 15 bond dealers record 1.63 trillion won for collusion
South Korea fined 15 banks and brokerages 1.63 trillion won for colluding in government bond auctions.
The penalties cover conduct from January 2020 to June 2023, when the dealers shared bidding rates in 150 auctions.
In 145 auctions, the regulator found they also agreed on rates and the amount each would bid.
The firms were designated dealers, meaning they were among those allowed to take part in the government’s bond auctions.
The regulator said the coordination weakened competition and pushed up the government’s borrowing costs, causing losses to public funds.
The fine is the largest the regulator has imposed in a single case, and seven firms will be referred for investigation because of the length and scale of their involvement.
South Korea’s antitrust regulator fined 15 government-bond dealers a total of 1.626 trillion won, the largest fine it has imposed in a single case.
The regulator said the banks and brokerages colluded in government bond auctions from January 2020 to June 2023.
They exchanged bidding-rate information in 150 auctions and directly agreed on rates and volumes in 145 of them.
The regulator said the conduct restricted competition and artificially raised bond yields, causing losses to the state.
Seven firms are to be referred to the Serious Crime Investigation Agency.
- Who
- South Korea’s antitrust regulator fined 15 government-bond primary dealers: 10 brokerages and five banks.
- What
- The firms were fined 1.626 trillion won for colluding in government bond auctions; seven are to be referred for investigation.
- When
- The alleged collusion ran from January 2020 to June 2023. The regulator announced the fines on November 11, 2026.
- Where
- South Korea’s government bond auction market.
- Why
- The regulator said the dealers coordinated bidding rates and volumes, restricting competition and artificially raising yields.
South Korea’s antitrust regulator
The 15 bond dealers
Conduct
South Korea’s antitrust regulator
The regulator said the firms exchanged bidding-rate information in 150 auctions and agreed on rates and volumes in 145.
The 15 bond dealers
Some dealers argued that the exchanges were casual conversation rather than collusion.
Effect
South Korea’s antitrust regulator
The regulator said the conduct restricted competition and led to artificially higher winning yields and losses to the state.
The 15 bond dealers
Not stated.
The regulator said the 15 dealers exchanged bidding-rate information in 150 auctions and agreed on rates and volumes in 145.
South Korea’s antitrust regulator announced fines totaling 1.626 trillion won and said seven firms would be referred for investigation.
- Total fine
- 1.626 trillion won
- Firms fined
- 15 primary dealers: 10 brokerages and five banks
- Collusion period
- January 2020–June 2023
- Auctions involved
- 150 auctions; direct agreements on rates and volumes in 145
- Largest individual fine
- KB Securities: 332.178 billion won
- Firms to be referred
- 7 dealers
3 sources
What people are saying
Considering legislative precedents and expert opinions, we judged that the winning bid amount should be treated as the relevant sales amount.