SEOUL, May 3, 2026 — South Korea’s Korea Fair Trade Commission has fined the Jeju Liquor Wholesalers’ Association 256 million won ($185,000) for restricting competition among its members through price controls and customer allocation practices.
The regulator said the association, which represents liquor wholesalers on Jeju Island, engaged in illegal cartel-like conduct by limiting competition for retail clients and setting caps on sales margins and discounts.
Coordinated limits on competition
According to the KFTC, the association introduced internal rules in 2018 prohibiting members from targeting each other’s existing customers, effectively dividing the market and reducing competition for retail accounts.
The group reinforced these restrictions through meetings and formal guidelines, including dispute resolution procedures to penalise members who attempted to win over rivals’ clients.
Price controls imposed
The authority also found that the association set limits on pricing practices, requiring members to maintain so-called “normal” or “survival” prices when selling to retailers.
These pricing rules effectively capped discounts—such as limiting reductions to within 10% of a benchmark price—thereby restricting price competition among wholesalers.
Violations of competition law
The KFTC concluded that the conduct violated provisions of Korea’s competition law prohibiting:
- price-fixing and coordinated pricing
- restrictions on business activities by trade associations
As part of its decision, the regulator imposed:
- a corrective order banning the practices going forward
- a requirement to notify member companies of the ruling
- fines totalling 256 million won, with the bulk related to price restrictions
Boosting competition in local market
The case covers all 22 licensed liquor wholesalers operating in Jeju, making it a significant intervention in the island’s supply chain.
The KFTC said the decision is expected to increase price competition for popular products such as beer and soju, benefiting both residents and tourists.
The authority added that the ruling should also serve as a warning to similar trade associations in other regions, as it steps up enforcement against anti-competitive coordination affecting consumer prices.
