The air cargo cartel of twenty (21) carriers was the first case that domestic
and overseas airline companies admitted a conspiracy to restrict competition
in the air cargo market by introducing and raising fuel surcharges in collusion.
The KFTC imposed corrective measures against multiple carriers that illegally
raised their rates by introducing and increasing fuel surcharges for outbound
shipments from Korea and inbound shipments to Korea from Europe, Japan
and Hong Kong.
The air cargo cartel case was the largest case ever handled by the KFTC in
its enforcement history, involving twenty-one (21) companies from sixteen
(16) countries and resulting in total fines of KRW 124.3 billion. This is an
unprecedented case in that the KFTC showed its capability and strong
commitment to cartel enforcement by taking collective measures against all
the involved respondents and by coordinating with other competition agencies
which were concurrently investigating the cartel at issue. Moreover, the
detailed review and judgments on various issues conducted by the Committee,
including determinations of jurisdiction, justification of cartel behavior and
relevant turnover, are considered to provide valuable precedent in handling
future cartel cases.
Furthermore, in course of investigation, the KFTC worked in close
collaboration with other competition agencies in the U.S and EU through
coordinated raids and bilateral discussions, and thus, was able to strengthen its
enforcement capabilities by developing various investigative techniques.