From Naver-Dunamu Merger to Treasury Bond Collusion: KFTC Set to Wrap Up Major Cases in Q4

Naver–Dunamu Merger Review Targets Year-End Conclusion
Sanction Severity in 76 Trillion Won Treasury Bond Collusion Under Close Watch
Refiners’ Petroleum Price-Fixing Probe to Wrap Up by October

The Korea Fair Trade Commission (KFTC) is accelerating its all-out review process in the fourth quarter to reach final decisions on high-profile cases such as corporate mergers between major platforms and large-scale cartel cases that have direct implications for the national economy.

13 Additional Documents Submitted... Criticism Over Delays

Naver Headquarters in Seongnam, Gyeonggi Province. Photo by Yonhap News.

The most closely watched issue is the merger review between Naver Financial and Dunamu, now in its final stage with a goal of concluding within this year. Since the two companies filed their merger notification in November last year, the KFTC has requested additional documentation a total of 13 times, resulting in ongoing deliberations. Given the unusual combination of a platform and a virtual asset business, the regulator is closely examining both monopoly concerns and the potential for a transfer of market dominance. After the companies agreed on the merger ratio in November last year and began the formal review process, unexpected delays have already forced them to postpone their shareholders’ meetings twice.

Some have criticized the KFTC for being too slow in its review. KFTC Chair Byung-ki Joo appeared to acknowledge this frustration in a recent press briefing, stating, "There are concerns about multifaceted restrictions on competition across nearly ten related markets due to a merger of dominant platforms in both search and payments, as well as virtual assets." He added, "I ask for your understanding as this is an exceptionally complex merger review." He also emphasized that an extensive verification process using vast amounts of data is underway and promised to "conclude the review swiftly to ensure the deliberation is completed within the year."

Level of Sanctions in Collusion Cases Under Scrutiny as Treasury Bond Markets Roil

Major collusion cases that have directly impacted financial markets and consumer prices are also expected to reach final sanction decisions in the fourth quarter. The case involving collusion on government bond yields—cited as a super-large cartel—has already gone through three intensive plenary reviews and the committee is expected to soon reach its final agreement. Chair Joo has emphasized, "We will draw conclusions after comprehensively and carefully reviewing both the complex characteristics of the government bond auction system and the significant impact Treasury bond interest rates, as a benchmark, have on financial markets and the overall national economy."

Previously, the KFTC secretariat recommended not only corrective orders and fines, but also prosecutorial action against 15 financial institutions—including major securities firms and banks—suspected of colluding in government bond auctions involving a staggering 76 trillion won. As the theoretical maximum fine could reach approximately 15 trillion won, and with bond yields recently surging, there are mounting concerns that the sanctions could significantly contract the market for primary dealers (PDs) in government bonds. As a result, the possible severity of the sanctions is drawing keen attention from both the financial sector and the Ministry of Economy and Finance.

In addition, the review of petroleum product price-fixing by refiners—a matter that directly affects consumer livelihoods during this era of high inflation—is also picking up speed. The KFTC plans to complete a thorough investigation into this case by October, after which it will make a final decision on whether to initiate formal deliberations. Based on a principle of imposing strict penalties so that the cost of breaking the law far outweighs any unlawful gains, the commission aims to further restore discipline and order to the market, starting in the fourth quarter.

This content was produced with the assistance of AI translation services.