Administrative Order and Fine of 361 Million KRW, Prosecutor Referral
Sanrok Shipping, which has been engaging in abusive practices such as charging excessive fees to pilot boat companies, will face sanctions from the Fair Trade Commission.
On the 18th, the Fair Trade Commission announced that it imposed corrective orders and a fine of 361 million KRW on Sanrok Shipping for abusing its trading position, and also reported the company to the prosecution.
Sanrok Shipping is a shipping agency handling ship entry and exit operations such as arranging pilot boat companies, holding over 70% market share at Songak Pier in Pyeongtaek and Dangjin ports.
According to the Fair Trade Commission, Sanrok Shipping evenly allocated pilot boat volumes to eight companies with which it had contracts from May 2017 to June 2021, over a period of more than four years.
One of the eight companies, Company A, in June 2021 formed a consortium with an external large pilot boat company to participate in a public bidding for pilot boat operators, aiming to contract directly with shipping lines without going through Sanrok Shipping, the shipping agency.
However, the bid was ultimately put on hold, and Company A failed to sign a contract with the shipping lines. Subsequently, Sanrok Shipping sharply reduced the pilot boat volume allocated to Company A.
Company A reported to the Fair Trade Commission that the reduction in volume by Sanrok Shipping constituted a 'retaliatory act.' In response, Sanrok Shipping warned that if Company A did not withdraw the complaint to the Fair Trade Commission, it would stop allocating pilot boat volumes in the future, and indeed halted allocations to Company A.
Furthermore, from May 2017 to December 2022, Sanrok Shipping collected an arbitrary fee of 770 million KRW from seven pilot boat companies, separate from the agency fees specified in the contracts, which violated industry practices.
The Fair Trade Commission decided on sanctions, finding that Sanrok Shipping abused its trading position to disadvantage pilot boat companies or secure excessive profits.
The Fair Trade Commission stated, "A shipping agency with a high market share at a specific regional pier abused its trading position derived from the delegated pilot boat allocation authority from pilot boat demanders, providing disadvantages or forcing benefits on pilot boat companies," adding, "We plan to strengthen monitoring of unfair trade cases that significantly impact local communities to foster a culture of fair competition."
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