Seoul: South Korea's antitrust regulator announced that it has levied a total fine of 408.3 billion won (US$283.9 million) on the nation's three primary sugar manufacturers for engaging in price-fixing activities.
According to Yonhap News Agency, the Fair Trade Commission (FTC) identified CJ CheilJedang Corp., Samyang Corp., and TS Corporation Co. as having colluded to adjust sugar prices on eight separate occasions between February 2021 and April 2025. This penalty is noted as the second-largest ever imposed for a single price-fixing case in the country and the largest on a per-company basis.
FTC Chairman Ju Biung-ghi highlighted the high barriers to entry within the sugar industry, which the refiners exploited to secure stable profits and maximize gains through collusion. As of 2024, these three companies held a collective market share of approximately 89 percent, according to the FTC.
The companies reportedly generated combined sales of 3.29 trillion won through their collusion during the specified period. The FTC stated that the companies coordinated the timing and extent of price increases to quickly mirror rising raw material costs when international sugar prices surged. They also exerted joint pressure on food and beverage companies that resisted the proposed price hikes.
Furthermore, when global raw sugar prices fell, the companies allegedly agreed to delay price reductions or reduce prices by less than the decline in raw material costs. The watchdog emphasized that this incident is not the first occurrence of collusion among these sugar refiners, as they were previously fined for similar price-rigging practices in 2007.
The announcement follows President Lee Jae Myung's directive for all available measures to be employed to stabilize prices and prevent companies from abusing monopolistic power to unjustly raise prices.