South Korea's antitrust watchdog said Monday it has slapped a 143 million won ($129,300) fine on Hite Jinro Co., one of the country's largest distillers, for carrying out a false advertisement campaign against its main competitor.

According to the Fair Trade Commission, Hite Jinro distributed fliers and banners between March and May of 2012, claiming that the Chum-Churum soju made by Lotte Chilsung Beverage Co. is harmful to drink and is distilled in an unlawful manner.

Chum-Churum had been gaining popularity among consumers and was putting pressure on the Chamisul soju made by Hite Jinro.

The competition regulator said Jinro carried out such attacks mainly in Seoul and the surrounding Gyeonggi region, with full knowledge that the allegations it raised were not true.

"It even tried to make it look like bars, restaurants and liquor stores took it upon themselves to attack Lotte, when in fact, such actions were coordinated with Hite Jinro's head office," the FTC claimed.

The agency said such actions were designed to confuse consumers and violated the country's fair trade rules.

The FTC said the penalty will send a message that it will deal firmly with false advertisements that distort fair and open competition. (Yonhap)