South Korean regulators slapped a hefty fine on three local companies for price collusion --the first punishment of its kind in that country, the May 18 Financial Times reports. South Korea's telecoms market is one of the most heavily regulated in the emerging markets, but the South Korean case of unfair business practices appears to be pretty straightforward.
Meanwhile, back in Seoul, at the three firms involved in the unfair business practices, the question their executives should be asking themselves is whether their companies have the right corporate governance systems in place. That's the first thing they must address --after paying their fines, of course-- if they want their companies to remain viable in both their domestic and global markets. In today's globalized world, both mature and emerging markets are no longer forgiving of such infractions. Governance systems for firms are no longer a luxury, they are no longer an afterthought, they are part of the fundamentals of running a business. They are part of the "Corporate Governance 101" course the Seoul executives presumably failed to take.
For more Corporate Governance sources, check out International Corporate Governance, Eldis - Corporate Social Responsibility, Development Gateway - corporate governance.
For more on IFC's Corporate Governance practice -- click here.
Comments