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Nongshim headquarters. (Image: Nongshim) |
[Alpha Biz= Kim Jisun] South Korea’s Fair Trade Commission (FTC) has launched an investigation into five major food companies on suspicion of price-fixing, amid a wave of price hikes across the food industry.
On Monday, investigators from the FTC conducted on-site inspections at the headquarters of Nongshim, Orion, Lotte Wellfood, Haitai, and Crown Confectionery. The probe was initiated after the commission reportedly found indications that the companies may have colluded to raise prices.
The investigation comes as prices of processed and staple food products have been steadily increasing this year, raising concerns that unfair business practices may be behind the trend.
Since January, 11 major food companies have raised prices across a range of products. For example, Daesang increased prices of mayonnaise and pepper by 19.1%, while Binggrae raised coffee product prices by an average of 14%. This month, Ottogi, OB Beer, and Lotteria also announced plans for further price hikes.
According to Statistics Korea, processed food prices in March rose 3.6% year-on-year, significantly outpacing the overall inflation rate of 2.1%, marking the steepest rise in 15 months. Some analysts suggest that companies may be taking advantage of a perceived lapse in government oversight amid recent political instability.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
