6 pork distributors indicted for fixing prices
A prosecutor explains the results of an investigation into alleged pork price collusion at the Seoul Eastern District Prosecutors Office in Seoul, Tuesday. Yonhap
Prosecutors said Tuesday they have indicted six meat distributors for colluding to fix prices over six years in a scheme that involved 1.2 trillion won ($842 million) worth of pork.
Dodram Food and five other companies are accused of colluding to rig prices of pork supplied to major retailer E-Mart Inc. from August 2017 to November 2023, according to the Seoul Eastern District Prosecutors Office.
The prosecution said the six companies and 12 company officials have been indicted on charges of violating the Fair Trade Act.
The companies began to share prices of pork they supplied to Emart with each other after the retailer decided not to disclose bidding prices to encourage competition in August 2017, according to the prosecution.
It said the price fixing is estimated to have driven up supermarket prices of pork by at least 20 percent, adding that E-Mart bought 1.2 trillion won worth of pork from the companies over the cited period.
After the scheme was uncovered in November 2023, supermarket pork belly prices fell due to competition, even as the wholesale price of pork rose from 5,134 won per kilogram in 2023 to 5,239 won the next year, according to the prosecution.