Four foreign banks - Deutsche Bank, JP Morgan Chase Bank, SC Bank Korea and HSBC - will be fined 693 million won for colluding in foreign currency derivatives transactions.
The Fair Trade Commission (FTC) said on Jan. 20 that it had detected four foreign banks' collusion between March 2010 and February 2012 by agreeing on a fee to offer five companies in the seven cases of foreign currency derivatives transactions, and decided on a correction order and a 693 million won fine.
By bank, JP Morgan Chase Bank had the largest fine with 251 million won, followed by HSBC (225 million won), Deutsche Bank (212 million won) and SC Bank Korea (5 million won).
These banks were found to have offered the same or similar prices when customers split up foreign currency derivatives under the same terms and conditions and traded with multiple banks. It was also revealed that if a customer chooses one of several banks, the banks agreed on the price in advance so that a particular bank can be chosen as the winner of the transaction with the customer.
The bank employees contacted sales representatives of other banks via messenger or wired line to discuss how to present prices for the same transaction and shared information about the price through messenger or other means in real time.