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Photo = Fair Trade Commission |
[Alpha Biz= Paul Lee] The Fair Trade Commission (FTC) has begun a re-investigation into the alleged collusion on Loan-to-Value (LTV) ratios by major commercial banks. The investigation centers on accusations that the banks shared loan terms and coordinated their lending limits.
According to industry sources on Wednesday, the FTC sent investigators to Shinhan Bank's headquarters for an on-site investigation on the same day. An investigation has also been ongoing at Woori Bank since February 10.
The investigation follows a decision by the FTC's plenary session in November 2024, which ordered a re-examination of "unfair joint actions by four major commercial banks." KB Kookmin, Shinhan, Hana, and Woori banks are accused of exchanging LTV data for up to 7,500 cases, aligning their lending limits in what is termed as an "information exchange collusion." This practice allegedly restricted market competition by sharing the ratio of loan amounts to collateral value.
The banks have argued that they only exchanged information, not engaged in collusion, and that there was no unfair benefit gained. They maintain that differences in LTVs between banks after the information exchange prove that there was no restriction of competition. Following the FTC's investigation in February 2023, the commission sent a report to the banks in January 2024 outlining the charges, but instead of imposing penalties, it ordered a re-examination.
The FTC is also expected to conduct on-site investigations at KB Kookmin Bank and Hana Bank in the near future.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
