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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korean prosecutors have indicted former executives of Samyang Corp. and CJ CheilJedang on charges of colluding to fix sugar prices in a scheme valued at more than KRW 3 trillion, authorities announced on the 26th.
The Seoul Central District Prosecutors’ Office’s Fair Trade Investigation Unit indicted Samyang Corp. CEO Choi and Kim, former head of CJ CheilJedang’s Korea Food Business Division, under detention for alleged violations of the Monopoly Regulation and Fair Trade Act. Samyang Corp., CJ CheilJedang, and a total of nine employees from both companies were also indicted. However, Daehan Sugar and its employees, who were also implicated in the alleged collusion, were not included in the final charges.
According to the prosecution, South Korea’s three major sugar producers—CJ CheilJedang, Samyang Corp., and Daehan Sugar—conspired between February 2021 and April 2024 to pre-arrange changes in sugar prices, including the timing, magnitude, and direction of adjustments. The alleged collusion affected sugar transactions worth KRW 3.2715 trillion.
The investigation found that sugar prices increased by as much as 66% following the alleged cartel activities. The prosecution noted that between 2020 and 2024, sugar prices rose 59.7%, far outpacing overall consumer inflation, which increased 14% during the same period.
Prosecutors also stated that the companies did not sufficiently pass on declines in raw sugar (raw material) prices to consumers, instead shifting cost burdens onto the public.
“The three major sugar producers have been repeatedly caught engaging in cartel activities in the past, but penalties were largely limited to fines,” the prosecution said. "This has allowed price-fixing to become an entrenched practice in the industry. We will ensure thorough prosecution to eradicate collusion that severely harms ordinary consumers."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
