Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
3 sugar makers fined $282 mil. for price-fixing
Fair Trade Commission (FTC) Chairman Ju Biung-ghi speaks during a media briefing at Government Complex Sejong, Thursday. Courtesy of FTC
By Lee Min-hyung
Korea’s three major sugar producers — CJ CheilJedang, Samyang and TS — have been fined a combined 408.2 billion won ($282 million) for colluding to fix sugar prices, the Fair Trade Commission (FTC) said Thursday.
CJ CheilJedang was fined 150 billion won, while Samyang and TS were slapped with penalties of 130 billion won and 127 billion won, respectively.
According to the FTC, the companies conspired to fix prices on eight occasions over roughly four years, from February 2021 to April 2025. The fine marks the second-largest ever imposed by the regulator in a collusion case.
The sugar industry is heavily regulated worldwide to protect domestic makers from volatile global prices. However, the firms engaged in the illegal practice at a time when consumers were suffering from the fallout of the COVID-19 pandemic, the FTC said.
The hefty penalties come as the Lee Jae Myung administration steps up efforts to tighten oversight of price-fixing practices.
Earlier this month, Lee praised prosecutors for indicting 52 executives on charges of price-fixing involving daily necessities such as flour, sugar and electricity.
The FTC also ordered the sugar makers to report any price changes on their sugar products.
"The latest sanction will contribute to stabilizing the price of groceries by cutting the predatory collusion," FTC Chairman Ju Biung-ghi said during a media briefing. "The authority will keep monitoring their sugar price changes in real-time to preemptively block the possibility of collusion in the future."
Sugar products are displayed at a store in Seoul, Sunday. Yonhap
CJ CheilJedang issued a public apology for triggering the controversy.
"We deeply apologize for causing concern to customers," the company said in a statement. "The company is aware of the graveness of the incident. We will take swift measures to prevent the recurrence of such an incident."
The company also withdrew from the Korea Sugar Association, an organization that supports its members' purchase of raw materials for sugar.
The association, however, caught flak for serving as a major channel for sugar makers to communicate with each other regarding prices.
CJ also decided to strengthen internal discipline by prohibiting its employees and executives from contacting with officials from other sugar makers.
Samyang, for its part, said it would accept the Fair Trade Commission’s decision and revise its corporate ethics principles and compliance guidelines. The updated rules include a ban on discussions over prices and production volumes, as well as a requirement to immediately report any proposals for collusion.
The FTC also pledged to take stern measures against any collusive acts on products linked closely with the livelihood of the public.
"We are investigating whether companies have engaged in any price-fixing for eggs, flour and pork," Ju said. "The FTC will operate a swift response team to severely deal with any signs of possible collusion that infringes on people's livelihood."