Watchdog Inspects Top Korean Banks for Potential Collusion Again

South Korea’s antitrust watchdog inspected the country’s four largest banks, the latest in ongoing efforts to investigate potential collusion on loan rates.

(Bloomberg) — South Korea’s antitrust watchdog inspected the country’s four largest banks, the latest in ongoing efforts to investigate potential collusion on loan rates.

The country’s Fair Trade Commission sent inspection teams to Kookmin Bank, Hana Bank, Shinhan Bank and Woori Bank to secure data this week, according to spokespeople for the lenders. 

The FTC is probing whether there was any improper information sharing or collusion beyond what’s permissible, JoongAng Ilbo newspaper reported earlier Wednesday, citing unidentified industry officials. 

The FTC declined to comment. 

The visits mark the second on-site inspections this year after President Yoon Suk Yeol earlier this year criticized banks for a “money feast” of excessive profits despite consumers suffering from high interest rates at lenders. The first inspection targeted the four banks, as well as NongHyup Bank, Industrial Bank of Korea and the Korea Federation of Banks. 

Yoon’s office also said in February that the nation’s banks made “easy” profit from the gap between interest rates on deposits and those on loans. The banks posted a total of 18.9 trillion won ($14.5 billion) in net income last year, an increase of 2 trillion won compared to the previous year, it said, according to the Financial Supervisory Service. 

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