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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Executives from major food companies are facing potential arrest over allegations of collusion in the starch sweetener market, a sector closely tied to consumer prices.
According to legal sources on March 30, Judge Kim Jin-man of the Seoul Central District Court is set to hold pre-arrest hearings (warrant review hearings) on March 31 for three individuals, including an executive from Daesang, a business division head, and the CEO of Sajo CPK, an affiliate of the Sajo Group.
Prosecutors filed arrest warrant requests on March 26 on charges including violations of the Fair Trade Act.
The executives are accused of pre-arranging sales prices of starch sweeteners and colluding on bid prices during tenders involving major corporate buyers. Starch sweeteners—such as corn syrup and glucose derived from corn starch—are widely used in food production and are considered essential consumer goods.
As part of the investigation, prosecutors conducted raids on four companies—including Daesang, Sajo CPK, Samyang, and CJ CheilJedang—on February 23. On March 4, prosecutors exercised their first request for referral (complaint) against the corporations, followed by a second request to the Fair Trade Commission.
Under Korean law, prosecutors are required to secure a formal complaint from the Fair Trade Commission before proceeding with indictment in cases involving violations of the Fair Trade Act.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
