Probe follows president's remarks; major chains have held prices steady for years despite falling raw material costs

A fried chicken franchise store in Seoul. [Yonhap]
A fried chicken franchise store in Seoul. [Yonhap]

The Korea Fair Trade Commission has launched a full-scale investigation into suspected price-fixing in the fried chicken industry.

According to industry sources Tuesday, the Fair Trade Commission dispatched investigators to the headquarters of bhc, BBQ and Kyochon Chicken for on-site inspections that day.

The probe was prompted by mounting criticism that chicken prices have remained stubbornly high even as the cost of broiler chickens — the main raw ingredient — has fallen sharply.

President Lee Jae Myung had weighed in on the issue Wednesday, sharing a news article on social media that noted broiler chicken prices used in fried chicken had dropped 37.7 percent over the previous six months, while flagship menu items at major franchise chains continued to hover around 23,000 won. "I'll look into this," Lee wrote in his post.

Following the president's remarks, the Fair Trade Commission had been examining how changes in raw material costs were being reflected in retail chicken prices, while also reviewing each company's pricing process and the cost-sharing structure between franchisors and franchisees.

The on-site inspections were carried out immediately after the holiday break. Personnel from the commission's Cartel Investigation Bureau, which handles price-fixing cases, were said to form the core of the inspection team.

Industry observers called it unusual for the Fair Trade Commission to investigate major chicken franchise chains for potential price collusion.

The chicken industry maintains that broiler chicken prices alone do not determine retail prices. Companies say other cost burdens — including labor, logistics, cooking oil, packaging and delivery platform fees — have grown significantly, and that past increases in broiler prices were not immediately passed on to consumers either.

The industry also argues that final retail prices are set by individual franchise operators, not the chains themselves, and that limited interaction among competitors makes coordinated pricing unlikely.

Prices at the major chains have held steady for years without further increases. Kyochon Chicken last raised its prices in April 2023, bhc in December of the same year, and BBQ in June 2024 — and all three have maintained those levels since.


y2k@heraldcorp.com