South Korea’s competition watchdog has opened an investigation into Singapore-based container manufacturer Singamas Container and three Chinese container makers over allegations of price-fixing, according to a report by the Korea Economic Daily Global.
The report, published on Tuesday, said the Korea Fair Trade Commission is examining whether Singamas and Chinese firms China International Marine Containers (CIMC), Shanghai Universal Logistics Equipment and CXIC Group Containers violated South Korean competition law through alleged anti-competitive practices.
The investigation follows criminal charges filed by the United States alleging that several of the world’s largest container manufacturers conspired to restrict production and inflate prices for standard steel shipping containers during the COVID-19 pandemic.
According to the report, South Korea has become the first country outside the United States to launch an investigation into the alleged cartel. The Business Times said it had contacted the Korea Fair Trade Commission for comment by email.
Singapore shipping executive Teo Siong Seng, chairman and chief executive of Hong Kong-listed Singamas, has been charged by the U.S. Department of Justice alongside representatives of CIMC, Shanghai Universal Logistics Equipment and CXIC Group Containers.
U.S. prosecutors allege the executives coordinated production of standard dry shipping containers, forming part of an alleged conspiracy to restrict supply and increase prices during the pandemic.
The U.S. criminal proceedings remain pending.
Following the criminal charges, the first class action lawsuits have also been filed by container buyers against the manufacturers and their executives. The lawsuits seek damages, restitution and the disgorgement of profits linked to the alleged conduct.
The South Korean investigation marks a further expansion of regulatory scrutiny into the global container manufacturing industry as authorities examine allegations that supply restrictions contributed to higher shipping container prices during the pandemic period.
