The Korea Financial Investment Association challenged record fines against government bond dealers, warning they could disrupt South Korea’s $1 trillion sovereign bond market. According to Sina Finance, the association said Wednesday evening that it deeply regretted the Fair Trade Commission’s decision and that suspending or revoking primary-dealer status could severely impede government bond issuance.

The association, which represents securities firms, asset managers and other investment institutions, plans to file an administrative lawsuit and pursue other legal proceedings. South Korea’s antitrust regulator fined more than a dozen local banks and securities firms a record 1.63 trillion won ($1.2 billion) on Wednesday for allegedly colluding in government bond auctions. KB Securities received the largest fine, at 332.2 billion won, followed by NH Investment & Securities and Mirae Asset Securities.

Primary dealers are banks and securities firms designated by the Ministry of Economy and Finance to participate directly in government bond auctions. The ministry said it and the Fair Trade Commission shared the position that primary dealers involved in collusion should be penalized.

NICE Investors Service said the ruling’s effect on the credit ratings of the financial institutions involved is expected to be limited. As of the end of June 2026, the fines represented about 0.3% to 4.2% of securities firms’ net assets and a negligible share for banks.