[News Today] Price-fixing behind egg price hike

[LEAD]

Egg prices have climbed sharply, with a tray of 30 now nearing 8,000 won. The rise has largely been blamed on a drop in chicken numbers caused by highly pathogenic avian influenza. But the Fair Trade Commission says there was another factor.

Its investigation found that price-fixing also played a role in pushing up egg prices.

[REPORT]

People hesitate to pick up eggs.

One price tag shows it costs nearly 13,000 won or nearly 9 U.S. dollars for 30 eggs.

It isn't surprising that shoppers can't make up their minds easily.

Hong Ok-mi / Seoul resident

I eat 60 eggs a month. Due to the price spike it’s become a burden. Even the store-recommended, budget-friendly eggs are expensive.

The national average consumer price for thirty eggs exceeded 7,300 won.

The Fair Trade Commission found out that the Korea Egg Producers Association's price-fixing drove up the egg prices.

The association has been notifying egg producers of 'standard producer price' since early 2023.

The FTC concluded that these standard prices actually served as price guidelines.

The government watchdog presented actual egg transaction prices that changed in tandem with the standard prices.

The standard price rose over 9% even when feed and production costs went down, eventually pushing up the consumer prices for eggs.

Moon Jae-ho / Chief of Cartel Investigation Bureau, FTC

It worked as a guideline to limit egg producers’ free and independent pricing decisions and competition.

The FTC decided to impose a fine of roughly KRW 590 million or over 390-thousand U.S. dollars on the association for the illegal action.

Also, the Ministry of Agriculture, Food and Rural Affairs plans to review cancelling KEPA's establishment approval.