SME Printing Industry Calls for Stronger Action Following KFTC's Leniency in Paper Price-Fixing Case

The Korea Federation of Printing Industry Cooperatives (KFPIC) and small and medium-sized (SME) printing businesses across South Korea have expressed deep regret over the Korea Fair Trade Commission's (KFTC) decision to significantly reduce administrative fines imposed on major paper manufacturers involved in a long-running price-fixing scheme.

According to the KFTC's decision, the total fines imposed on paper manufacturers were reduced from an initially proposed 338.3 billion won to 144.1 billion won through the application of the leniency program. Hansol Paper received a full exemption from a 142.5 billion won fine, while Murim affiliates received reductions totaling 51.7 billion won, resulting in approximately 194.2 billion won in waived penalties.

The Federation stated that the decision weakens the deterrent effect of South Korea's competition enforcement framework and risks undermining confidence in the Fair Trade Act's ability to prevent repeated anti-competitive conduct.

"The substantial reduction of penalties for companies involved in repeated collusive practices sends the wrong signal to the market," the Federation said. "The government should take concrete steps to protect small businesses that have suffered significant economic harm as a result of unlawful price-fixing."

The SME printing industry noted that paper manufacturers, which account for approximately 95 percent of the domestic printing paper market, increased printing paper prices by an average of 71 percent between February 2021 and December 2025—the period during which the collusion allegedly occurred. Many printing companies were unable to pass these increased costs on to customers, leading to declining profitability, employment pressures, and reduced investment in business operations.

The Federation called on the KFTC to publicly disclose the legal basis and deliberation process behind the fine reductions and urged the government to establish practical measures to support affected printing businesses, including damage recovery initiatives and programs to strengthen the competitiveness of SMEs and micro-enterprises.

In addition, the Federation called on the National Assembly and the KFTC to review and strengthen the Fair Trade Act by limiting the application of leniency in cases involving habitual or repeated collusion. It also urged major paper manufacturers to engage in constructive dialogue with industry stakeholders to promote transparent and fair trading practices.

Park Jang-sun, Chairman of the Korea Federation of Printing Industry Cooperatives, reaffirmed the Federation's commitment to protecting the industry.

"We will continue pursuing all available legal and institutional measures until a fair market order is restored and the damages caused by collusion are effectively addressed. We stand together with approximately 20,000 printing business owners and 68,000 employees across the country to protect the sustainability and future of Korea's printing industry."