Officials of the anti trust agency in South Korea said it had collected documents from a financial industry consortium showing the benchmark rates during its inquiry as to borrowing costs. The investigation has been ongoing for over a year, according to two individuals with knowledge of the action.
Last Sept 13, inspectors from the Fair Trade Commission had obtained data about certificate of deposit rates from the Seoul office of Korea Financial Investment Association. The association comprises of brokerages and asset managers . The said event was covered and reporred by the Chosun Ilbo newspaper.
In December, South Korea had introduced a new benchmark rate for its bank lending. An investigation was also launched as to the possible collusion between lenders and brokerage firms to manipulate the borrowing costs snowballed from angered customers and lawmakers. The Fair Trade Commission has started its inquiry with the possible rigging of the 91-day certificate of deposit cost, which is a key money market rate in South Korea back in July 2012.
For its part, the KFIA, who is the agency that pegs the CD rate twice a day depending on the submissions of ten brokerages, declined to provide a comment on the FTC visit. The FTC's press officer did not return calls to their offices.
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