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South Korea’s antitrust watchdog has launched a probe into two major bed manufacturers for their possible involvement in unfair business activities, government and industry sources said Tuesday.
Last week, the Fair Trade Commission sent its workers to the offices of Ace Bed Co. and Simmons Co., the country’s No. 1 and No. 2 bed manufacturers, to secure documents and other information on sales and transactions, according to the sources.
The FTC is closely looking into whether the bed makers have been involved in unfair business practices such as providing improper support for companies with whom they have special relationships or using their power to intentionally block other competitors from entering the market, the sources said.
The largest shareholders of the two companies are sons of Ahn Yoo-soo, the founder of Ace Bed. Ahn also has been running a separate bed-making brand since 2002 when he signed a license deal with a U.S. company.
When Ahn launched the new brand, some industry watchers suspected that he tried to undercut competitors by consolidating the market power of his own family. They regarded the three bed makers as a single business group.
In 2009, the FTC fined Ace Bed and Simmons 4.2 billion won ($3.95 million) and 1 billion won, respectively, for conspiring to fix prices. (Yonhap News)
Last week, the Fair Trade Commission sent its workers to the offices of Ace Bed Co. and Simmons Co., the country’s No. 1 and No. 2 bed manufacturers, to secure documents and other information on sales and transactions, according to the sources.
The FTC is closely looking into whether the bed makers have been involved in unfair business practices such as providing improper support for companies with whom they have special relationships or using their power to intentionally block other competitors from entering the market, the sources said.
The largest shareholders of the two companies are sons of Ahn Yoo-soo, the founder of Ace Bed. Ahn also has been running a separate bed-making brand since 2002 when he signed a license deal with a U.S. company.
When Ahn launched the new brand, some industry watchers suspected that he tried to undercut competitors by consolidating the market power of his own family. They regarded the three bed makers as a single business group.
In 2009, the FTC fined Ace Bed and Simmons 4.2 billion won ($3.95 million) and 1 billion won, respectively, for conspiring to fix prices. (Yonhap News)
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Articles by Korea Herald
