The Korea Herald reports that the Fair Trade Commission (FTC) said yesterday it has fined Hyundai Motor Group a total of 7.5 billion won ($6.26 million) for abuses of monopoly power. According to the FTC, Hyundai Motor Group abused its monopoly power to assist its sister finance company Hyundai Capital Services Inc.

The report says that the antitrust body has imposed a fine of 4.9 billon won on Hyundai Motor Co. and 2.6 billion won on its sister company, Kia Motors Co.

“The two automakers are abusing their monopoly power to take over the country’s car loan service market,” Ju Soon-sik, director-general of the FTC’s Antitrust Bureau told the Korea Herald.

The report adds that since April 8, Hyundai Motor and Kia Motors have signed an exclusive contract with Hyundai Capital to provide lower-than-marker interest rate on their customers’ car loan payments. The contract has encouraged the two auto giants’ customers to use Hyundai Capital’s car loan service, which is a clear violation of the FTC’s monopoly regulation, the antitrust watchdog said.

The Herald report says that Hyundai Capital’s market share surged from 46.4% in March to 57.2%, while the percentage of the two automakers’ customers using Hyundai’s Capital’s car loan service jumped from 63% to 80%.

Hyundai Motor and Kia Motors account for around 75% of South Korea’s car market.

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