[THE INVESTOR] The Fair Trade Commission has launched an investigation into Yuhan Kimberly on allegations that it is overpricing sanitary pads. 

Yuhan-Kimberly is a joint venture between Korean pharmaceutical and chemical firm Yuhan Co. and Kimberly-Clark of the US. 

The antitrust watchdog is looking into whether it can apply laws banning companies from abusing their market dominant position when deciding on product prices. 

“We are looking into the matter, and because the investigation was triggered by formal complaints, Yuhan-Kimberly will not be exempt from probes despite being designated as a company promoting mutual growth with suppliers,” said FTC head Chung Jae-chan at a National Assembly committee meeting on July 11.

The complaints were raised against Yuhan-Kimberly and other sanitary pad producers following news reports that girls from lower-income families could not afford such pads.

The price of sanitary pads in Korea has risen 25.6 percent since 2010. The growth clip is 2.4 times the rise in consumer prices. But during the same period, the price of pad materials fell up to 30 percent, according to industry figures.

In June, Yuhan-Kimberly was recognized by the government-run Korea Commission for Corporate Partnership for its efforts to promote mutually-beneficial growth with its suppliers.

By Kim Ji-hyun (jemmie@heraldcorp.com)