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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korean prosecutors have indicted major food companies including Daesang, Sajo CPK, and CJ CheilJedang over a large-scale price-fixing cartel in the starch-sweetener market, marking the largest collusion case in the country’s food industry history.
According to the Seoul Central District Prosecutors’ Office on April 23, three companies and 25 executives and employees were indicted on charges of violating the Fair Trade Act. Samyang Corporation was also involved but was not indicted due to its cooperation with the investigation.
Prosecutors said the four companies controlled over 90% of the domestic starch-sweetener market and engaged in collusion from July 2017 to October last year, covering transactions worth KRW 10.15 trillion. The scheme included general price-fixing, bid rigging for major clients, and collusion on byproduct pricing.
Investigators found that executives coordinated price increases for products such as starch syrup and fructose, while disguising the cartel by setting slightly different bid prices and staggering official communications. Evidence included internal photos and communications detailing coordinated actions.
Authorities said the collusion led to sharp price increases and substantial gains for the companies, far exceeding typical industry profitability levels.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
