Deterrence Effects of Korean Antitrust Enforcement on Producer Prices and Profit Margins

Robert M. Feinberg, American University and Minsoo Park, Sungkyunkwan University and CERK analyze Deterrence Effects of Korean Antitrust Enforcement on Producer Prices and Profit Margins.

ABSTRACT: Antitrust enforcement is by now well-established in Korea, yet there has been little study of its effectiveness. Connor (2008), however, noted that “the Korean FTC has the best record of anti-cartel enforcement in Asia” and Jeong and Masson (1990) found evidence of market structure impacts on industry performance in Korea. In this paper we examine several datasets to investigate whether antitrust enforcement in Korea, especially anti-cartel activity, has had desirable price-limiting impacts over the past couple of decades.