fair trade watchdog-flour producers
Watchdog slaps 671 bln-won fines on seven flour producers for price fixing
By Kang Yoon-seung
SEOUL, May 20 (Yonhap) -- South Korea's antitrust watchdog on Wednesday imposed a combined 671 billion won (US$443.8 million) in fines on seven flour producers on charges of price fixing.
The Fair Trade Commission (FTC) announced the measure following an investigation that found the companies -- CJ CheilJedang Corp., Daehan Flour Mills Corp., Sajo Dongaone Co., Samyang Corp., Daesun Flour Mills Co., Samhwa Flour Mills and Hantop Inc. -- colluded to fix prices from 2019 to 2025.
According to the watchdog, the companies, which account for 87.7 percent of the domestic business-to-business flour market, rigged prices for flour supplied to noodle and confectionery manufacturers.
"Using their dominant market positions, the companies colluded on the scope of price increases and cuts on 24 occasions, while agreeing on supply volumes and supply priorities for flour delivered to their customers," the FTC said in a release.
Instant noodle products are displayed at a supermarket in Seoul in this file photo taken on April 3, 2026. (Yonhap)
The FTC said the companies violated the fair trade law despite having been punished for collusion in 2006. It added the companies carried out their illegal practices even while receiving government subsidies aimed at stabilizing consumer prices from 2022 to 2023.
The flour producers colluded to fix prices for products supplied not only to major food companies, such as Nongshim Co. and Paldo Co., but also to smaller businesses and retailers.
The companies held 55 meetings involving top executives, where they reached broad agreements, with working-level officials ironing out the details through follow-up meetings.
The watchdog said flour prices charged by the companies surged by as much as 74 percent in September 2022, when the collusion began, from December 2019.
"Flour is a staple product and a key ingredient for manufacturers of ramyeon, instant noodles, bread and snacks. It is one of the products most closely linked to people's livelihoods," the FTC said.
The watchdog said the measure is expected to normalize the market, recover illicit gains and ultimately ease the financial burden on households.
"The FTC will continue to strengthen surveillance and take stern action against price fixing involving food products that are closely linked to the everyday lives of people," it stressed.
This undated file photo shows the sign of the Fair Trade Commission at its headquarters in the central city of Sejong. (PHOTO NOT FOR SALE) (Yonhap)
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