The Fair Trade Commission has officially launched a reinvestigation into the suspected collusion on loan-to-value ratios (LTV) among the four major domestic banks, starting with Shinhan and Woori Bank.
According to related industry sources on the 12th, the Fair Trade Commission sent investigators to conduct an on-site inspection at Shinhan Bank's headquarters located in Jung-gu, Seoul, this morning. The commission had also dispatched investigators to Woori Bank's headquarters since the 10th.
The Fair Trade Commission believes that the four major domestic banks?Shinhan, Woori, KB Kookmin, and Hana?violated Article 40 (Unfair Joint Acts) of the 'Monopoly Regulation and Fair Trade Act' by sharing information related to real estate LTV and engaging in illegal collusion.
The commission's assessment is that these four banks shared LTV information from December 2021 until recently, thereby hindering market competition.
During this on-site investigation, the Fair Trade Commission is expected to secure hard copies and other documents, contracts, and email records of the persons in charge that can prove the exchange of LTV information.
It is also reported that the commission plans to conduct on-site investigations at KB Kookmin Bank and Hana Bank soon.
Previously, in November of last year, the Fair Trade Commission decided to reexamine this case at a plenary meeting and began reinvestigating these banks.
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