South Korea Considers Sanctions for Four Firms in Price-Fixing Scandal Involving Starch Sugar
Synopsis
In a significant move, South Korea's Fair Trade Commission is reviewing penalties for four companies involved in a **price-fixing** scandal affecting sweetener prices for over seven years. This investigation highlights the ongoing battle against **collusion** in the market.
Key Takeaways
FTC investigation: The Fair Trade Commission is reviewing potential penalties for four firms.
Years of collusion: Companies allegedly colluded for over seven years to fix sweetener prices.
Financial impact: Estimated revenue loss due to collusion is 6.2 trillion won ($4.2 billion).
Potential penalties: Fines could reach up to 20% of affected sales.
Broader monitoring: FTC is also investigating gas stations for price gouging amid fuel price increases.
Seoul, March 6 (NationPress) The antitrust authority announced on Friday that it has initiated a review of potential sanctions against four firms accused of colluding to manipulate sweetener prices for over seven years. Inspectors from the Fair Trade Commission (FTC) have concluded their six-month investigation into the matter, revealing that the companies established a cartel to control the pricing of starch sugar products from May 2018 to October 2025, as stated by FTC officials.
The companies implicated in this case include Daesang, SajoCPK, Samyang, and CJ Cheiljedang, according to a report by Yonhap news agency. The inspectors have determined that the unfair practices resulted in an estimated combined revenue impact of 6.2 trillion won (approximately $4.2 billion) for these companies, prompting recommendations for the FTC to impose fines and issue corrective measures, including price adjustments.
Under current laws, the FTC has the authority to impose fines of up to 20% of the affected sales resulting from collusion. The FTC has started to review the investigation report to reach a swift final decision on the case and has forwarded the report to the companies involved to ensure they can exercise their rights of defense.
The commission emphasized its commitment to combating collusive practices to stabilize market prices and safeguard the livelihoods of citizens. Last month, the FTC began assessing penalties for seven flour producers implicated in another alleged collusion case.
In a different scenario, the FTC imposed a total fine of 408 billion won on three major sugar manufacturers for suspected price-fixing activities. Additionally, the governmental antitrust agency will closely monitor potential price gouging by gas stations nationwide, taking necessary actions as fuel prices have surged amid the military conflict in the Middle East.
The FTC stated, "We will deploy all regional offices to investigate potential collusion among gas stations, particularly those with elevated fuel prices, and will initiate on-site inspections based on monitoring outcomes for a thorough response," according to a press release. This announcement follows a recent spike in fuel prices, despite no immediate supply disruptions reported in South Korea due to the ongoing conflict in the Middle East sparked by attacks against Iran by U.S. and Israeli forces.
Point of View
I see this investigation as a crucial step toward ensuring market fairness. The FTC's proactive approach in tackling collusion reflects a commitment to protecting consumers and maintaining competitive pricing in the industry. Such actions are vital for the trust and stability of our economic landscape.
NationPress
2 May 2026
Frequently Asked Questions
What companies are involved in the alleged price-fixing?
The four companies involved are Daesang, SajoCPK, Samyang, and CJ Cheiljedang.
What is the estimated financial impact of the collusion?
The collusion reportedly affected a combined revenue of 6.2 trillion won, equivalent to about $4.2 billion.
What actions can the FTC take against these companies?
The FTC can impose fines of up to 20% of the sales affected by the collusion and issue corrective orders.
What is the FTC's stance on market collusion?
The FTC is committed to eradicating collusive practices to ensure market price stability and protect consumer livelihoods.
Are there other investigations by the FTC related to collusion?
Yes, the FTC is also reviewing penalties for seven flour producers involved in another collusion case.
