Watchdog expands food-sector cartel crackdown after sugar and flour cases

South Korea's Fair Trade Commission has launched on-site inspections at major domestic food companies over allegations of price-fixing in the soy sauce, doenjang and gochujang market, extending its crackdown on food-sector cartels beyond sugar and flour.

According to industry sources, the commission is conducting on-site investigations at CJ CheilJedang, Daesang, Sempio, Pulmuone and Sajodaerim, gathering relevant documents from each company.

A hypermarket in Seoul. [Newsis]
A hypermarket in Seoul. [Newsis]

The commission is examining whether the companies engaged in unfair collusion — such as coordinating prices or trading terms in advance — in the course of supplying fermented condiment products.

The probe comes as the commission has been stepping up scrutiny of collusion in the food industry amid rising consumer prices. In February, the watchdog fined CJ CheilJedang, Samyang and TS a combined 408.31 billion won ($297 million) for allegedly fixing sugar prices over roughly four years.

In May, the commission turned its attention to the flour market, imposing a combined fine of 671.04 billion won on seven companies — Daehan Flour Mill, CJ CheilJedang, Sajodongaone, Samyang, Daesun Flour Mill, Samhwa Flour Mill and Hantop — for allegedly colluding on flour prices.

A Fair Trade Commission official declined to comment on the investigation, saying the agency could not discuss individual cases.


y2k@heraldcorp.com