South Korea stepped up its Antitrust Crackdown after President Lee Jae Myung called for permanent measures against companies that repeatedly collude. In addition, Lee urged regulators to expel offenders who abuse market dominance and disrupt fair competition. Consequently, the move signals a stronger government stance on entrenched cartels across the economy.
Lee highlighted sectors ranging from sugar, flour, and meat to school uniforms and real estate. He described repeated collusive practices as “cancerous,” which block fair competition and undermine economic growth. Therefore, he ordered authorities to pursue “swift and forceful whole-of-government action” against such offenses.
During a meeting at Cheong Wa Dae, Lee stressed that sanctions must exceed the financial gains from collusion. He warned that criminal punishment alone could create a “punishment-first approach and judicial state.” Instead, he emphasized economic penalties, including confiscating illicit profits and increasing financial burdens. Moreover, he said these measures would better target profit-driven offenders.
“Particularly when such antimarket behavior is repeated, we should strongly consider permanently expelling offenders from the market,” Lee said. Furthermore, he explained that relying only on formal penalties cannot stop collusion effectively.
Presidential spokesperson Kim Nam-jun clarified that the administration is developing measures against antitrust offenders. He said the president’s statements reflect policy direction rather than final decisions. Meanwhile, the government plans to strengthen enforcement and protect consumers from repeated violations.
Lee repeatedly cited rising household costs as a risk. For example, at a senior aides’ meeting on February 12, he criticized school uniform prices reaching 600,000 won ($414), calling the costs a “backbreaker” for parents. In addition, he linked collusion in daily necessities and real estate to broader economic instability.
Prosecutors recently targeted price-fixing in essential goods. In early February, dozens of companies faced indictment for collusion involving flour, sugar, and electricity. Officials estimated the combined scale of collusion in these sectors reached about 10 trillion won, which consequently drove up consumer prices.
Experts say the Antitrust Crackdown could deter repeat offenders and restore market trust. They note that permanent market expulsion would send a clear signal that collusion will no longer go unchecked. Additionally, stronger enforcement may encourage better corporate compliance across sectors.
Looking ahead, the government may expand punitive measures to other industrial sectors. Authorities aim to ensure fair competition and protect households from price manipulation. Ultimately, the Antitrust Crackdown seeks to curb entrenched collusion, promote market integrity, and strengthen South Korea’s economic resilience.
