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Photo = CJ CheilJedang Headquarters |
[Alpha Biz= Paul Lee] SEOUL, Sept. 17 — South Korean prosecutors have launched a compulsory investigation into the nation’s three largest sugar manufacturers — CJ CheilJedang, Samyang Corp., and Daehan Sugar — on suspicion of collusion in sugar pricing, in violation of the Fair Trade Act.
According to industry sources, the Seoul Central District Prosecutors’ Office’s Fair Trade Investigation Division (Chief Prosecutor Na Hee-seok) on Tuesday dispatched prosecutors and investigators to raid the three companies, seizing relevant documents and data. The scale of the alleged price-fixing is estimated to be in the trillions of won.
The three firms together accounted for approximately 92% of the domestic sugar market as of last year. Prosecutors believe the suspected collusion has significantly affected the prices of processed foods such as bread, confectionery, and beverages, thereby exerting a considerable impact on household living costs.
This investigation marks a rare instance of prosecutors acting independently without a formal referral from the Korea Fair Trade Commission (KFTC). The KFTC had conducted an on-site inspection of the companies in March 2023 but had not taken further enforcement actions.
Industry representatives stated that the companies would cooperate fully with the investigation.
This is not the first time Korea’s sugar producers have faced cartel allegations. In 2007, the three companies were fined a combined KRW 51.1 billion (approx. USD 38 million) by the KFTC for colluding on product shipment volumes and prices between 1991 and 2005.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
