Ministry of Oceans and Fisheries: "Shipping Companies' Fare Negotiations Are Legal Under the Shipping Act... Regret Fair Trade Commission's Sanctions"

Focusing on Passing the 'Shipping Act Amendment'... Unified Supervision of Shipping Joint Actions Under the Ministry of Oceans and Fisheries Upon Law Approval

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Oceans and Fisheries expressed "regret" on the 18th regarding the Fair Trade Commission's imposition of fines totaling 96.2 billion KRW on 23 domestic and international shipping companies for collusion in maritime freight rates.

A Ministry of Oceans and Fisheries official stated, "Our position remains unchanged that the joint actions of the shipping companies were conducted within the scope of the Shipping Act."

On the same day, the Fair Trade Commission announced that from December 2003 to December 2018, through a total of 541 meetings, 12 Korean shipping companies and 11 foreign shipping companies agreed on freight rates 120 times on the Korea-Southeast Asia export and import routes. The Commission imposed corrective orders and fines totaling 96.2 billion KRW.

In response, the Ministry of Oceans and Fisheries has argued that these joint actions are permitted under Article 29 of the Shipping Act. Article 29 of the Shipping Act allows joint actions related to freight rates, vessel deployment, and cargo loading. Additionally, Article 58 of the Fair Trade Act exempts acts that are legitimate under other laws from the application of the Fair Trade Act.

The Ministry of Oceans and Fisheries plans to focus on passing an amendment to the Shipping Act through the National Assembly that would unify the supervisory authority over shipping joint actions under the Ministry. The Legislative Subcommittee of the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee passed this bill in September of last year. Once this amendment passes the plenary session of the National Assembly, supervision of shipping companies' joint actions will be conducted by the Ministry of Oceans and Fisheries instead of the Fair Trade Commission.