South Korean Paper Producers Expected to Avoid Legal Challenges After Record Antitrust Penalties

Major South Korean paper manufacturers are expected to refrain from filing administrative lawsuits following record antitrust penalties imposed over alleged price-fixing in the printing paper market, according to industry sources.

Companies including Moorim SP, Moorim Paper, Moorim P&P, Hankuk Paper, Hansol Paper, and Hongwon Paper are reviewing whether to contest fines issued by the Korea Fair Trade Commission.

Industry observers, however, expect the companies to focus on financial mitigation measures rather than pursue litigation. The firms reportedly acknowledged the collusion allegations and issued public apologies shortly after the regulator announced its decision. They also did not submit formal objections following the initial ruling.

The companies are accused of coordinating price increases for printing paper over a period of nearly four years. The regulator concluded that the conduct resulted in unjustified price increases passed on to consumers.

Total penalties amount to KRW 338 billion, representing the largest antitrust fine ever imposed on South Korea’s paper industry. The fines come as the sector faces continued market weakness and are estimated at roughly five times the combined net profit reported by the six companies last year.

Industry sources said the firms are likely to prioritize confirming mitigation factors included in the final ruling and may seek options such as installment-based payment arrangements.

Under current antitrust guidelines, companies that cooperate with investigations and acknowledge wrongdoing may qualify for penalty reductions of up to 20%. If fully applied, the total fines could decrease to approximately KRW 270.4 billion, depending on each company’s level of cooperation and involvement as outlined in the final decision documents.