South Korea’s Fair Trade Commission is investigating the country’s four largest commercial banks over possible interest rates collusion. The Commission sent inspectors to Kookmin Bank, Woori Bank, Shinhan and Hana Bank to look into data related to setting interest rates. According to news reports, the antitrust body dispatched six inspectors to each of the four banks to meet officials in charge of setting interest rates and examine some documents, emails and online messages to see if they communicated with their counterparts at other lenders about rates. It comes as banks are embroiled in a series of market-rigging scandals. These inquiries have been spawned by the scandal over collusion and rigging of the London interbank offered rate. The multiyear global Libor investigation has so far prompted regulators and the European Commission to charge $5.8 billion (€4.4 billion) in fines to 10 financial institutions. Interest rates are a sensitive issue in South Korea, where household debt stands at more than 150% of disposable income.
