Japanese bearing maker indicted for collusion
Resource from: THE KOREA TIMES Likes:253
Sep 14,2015
The prosecution said Sunday that it had indicted a Japanese ball bearing maker for colluding with another Japanese firm to win orders from Korean electronics companies at higher-than-market prices.
The Seoul Central District Prosecutors' Office said Sunday it had filed charges against Minebea for having colluded with NSK to manipulate prices of parts and to "respect" each other's rights in winning orders from Korean companies.
The companies supplied ball bearings to Samsung Electronics and LG Electronics from 2003 to 2011, reaping illegal gains, according to the prosecution.
NSK avoided indictment thanks to a leniency policy that gives immunity to a company that reports collusion first.
The prosecution said this was the first time that local authorities had taken an international cartel case to court, and vowed to crack down on similar cases, regardless of companies' nationality.
The indictment came eight months after the nation's anti-trust watchdog accused Minebea and NSK of restricting competition by colluding on prices of small bearings.
The prosecution summoned executives and employees from the companies' Japan and Korean offices, who admitted their involvement in collusion.
The companies increased price of ball bearings by up to 13 percent in April 2008, followed by a 33 percent hike in September, because of changes in foreign exchange rates. The companies also colluded to minimize price cuts in June 2003 when they faced strong demands from Korean buyers to cut prices. The firms reduced the price by 0.5 cent per bearing.
The Fair Trade Commission said both companies admitted they had engaged in collusion. The two companies account for about 80 percent of the Korean market.
According to the prosecution, executives from the companies met in Tokyo cafes to discuss prices.
Japanese makers dominate the market, which requires a high level of technology. The bearings are used for electronics products, machines and cars.
Minebea is the world's largest bearing maker, posting sales worth 4.6 trillion won last year. NSK is the second-largest. Minebea provided small bearings to Samsung Electronics while NSK provided them to LG Electronics.
(THE KOREA TIMES)
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