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Photo courtesy of the Prosecution Service |
[Alpha Biz= Paul Lee] South Korean prosecutors have indicted a senior executive of a major food company in connection with an alleged KRW 10 trillion price-fixing cartel involving starch and sweetener products.
The Seoul Central District Prosecutors’ Office said on February 16 that it has arrested and indicted an executive director at Daesang on charges of violating the Monopoly Regulation and Fair Trade Act.
Prosecutors suspect that Daesang, along with Sajo CPK, Samyang Corporation, and CJ CheilJedang, engaged in price-fixing activities over an eight-year period involving products derived from starch, with a total market impact estimated at around KRW 10 trillion.
Investigators believe the executive, as a key operational figure at Daesang—the market leader in the sector—was deeply involved in coordinating the alleged cartel.
The prosecution sought an arrest warrant on January 26, which was granted by the court on January 31, citing risks of evidence destruction and flight.
Authorities are now expanding the investigation beyond operational staff to senior management. Prosecutors recently exercised their authority to request that the Korea Fair Trade Commission file a formal complaint against a former CEO of Daesang, after reportedly identifying indications of leadership involvement in the alleged collusion.
Under Korean law, prosecutors require a referral from the Fair Trade Commission to pursue indictments in antitrust cases.
Starch-based sweeteners—including syrup and glucose derived from corn—are considered essential consumer goods closely tied to everyday living costs.
Prosecutors said they are intensifying investigations into price-fixing cases involving essential goods that directly affect household expenses. Between September last year and February this year, authorities indicted a total of 52 individuals—including CEOs and senior executives—and 16 corporations in connection with collusion cases involving sugar, flour, and electricity pricing.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
