SOUTH KOREA: Korean turns down prosecution deal

Korean Air refused to divulge details of its alleged cartel-like freight deals with other airlines in return for a 20 per cent discount on penalities as the industry collusion investigation continues across the globe. Details of the settlement off er, which Korean Air rejected because it believed it was "unreasonable", were revealed as part of […]


Korean Air refused to divulge details of its alleged cartel-like freight deals with other airlines in return for a 20 per cent discount on penalities as the industry collusion investigation continues across the globe.

Details of the settlement off er, which Korean Air rejected because it believed it was "unreasonable", were revealed as part of the carrier’s attempts to stop the Australian Competition and Consumer Commission (ACCC) from gaining documents via its investigation powers because the regulator had already decided to prosecute, according to Australian media reports.

The legal tussle in the Australian Federal Court comes as an estimated 30 or so airlines are subjected to one of the world’s biggest anti-cartel investigations by US and European authorities.

Korean was to be given a discount of about A$2 million on the total penalty of A$10 million if it decided to accept the ACCC’s proposal for settlement and provide the regulator with assistance in its investigation.