South Korea’s anti-monopoly watchdog said it had imposed a combined fine of $316 million against 12 life insurers for colluding to rig interest rates.
The Fair Trade Commission said Samsung Life Insurance, Kyobo Life Insurance and 10 other major insurers were fined 365.3 billion won for fixing interest rates applied to deposits set aside to pay for clients. Interest rates are a key factor that determines insurance premiums and the amount of money clients can receive in the future.
Samsung Life was ordered to pay 157.8 billion won while Kyobo must pay 134.2 billion won, the commission said.
Their illegal activities took place between 2001 and 2006 through diverse negotiation channels that allowed them to better retain customers and maintain overall profitability, it said.
Four others, including Dongbu Life Insurance and Prudential Life Insurance, were found to have engaged in similar practices, but they were just ordered to take corrective action immediately, it said.
Seoul, Oct 14, 2011 (AFP)
