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BackCollusion of sugar, flour, and starch sugar... Samyang Corporation, disgraced by being ranked first in fines by the Fair Trade Commission
Collusion of sugar, flour, and starch sugar... Samyang Corporation, disgraced by being ranked first in fines by the Fair Trade Commission
NEWS
연합뉴스3 hours agoBusiness2 min readSouth KoreaView original

Collusion of sugar, flour, and starch sugar... Samyang Corporation, disgraced by being ranked first in fines by the Fair Trade Commission

Samyang CorporationFair Trade Commissionfine

Quick Look

  • Samyang Corporation ranked first, with a cumulative fine of 435.378 billion won imposed by the Fair Trade Commission from 2023 to August of this year.
  • It was successively sanctioned for sugar, flour, starch, and starch sugar collusion, and Hyundai Livart recorded the highest number of sanctions with 59 violations during the same period.

AI-generated summary

Why It Matters

The Fair Trade Commission is promoting market order by imposing fines and issuing corrective orders for collusion and unfair trade practices. Price fixing in the food sector can lead to increased burden on consumers and cause social controversy.

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Samyang Corporation was counted as the company that received the most fines from the Fair Trade Commission from 2023 to August of this year. Hyundai Livart was identified as the company with the largest number of sanctions.

According to data on corporate group sanctions from 2023 to August of this year received from the Fair Trade Commission by Rep. Park Hong-bae of the Democratic Party of Korea, a member of the National Assembly's Political Affairs Committee, on the 11th, Samyang Corporation ranked first in cumulative fines, amounting to 435.378 billion won.

Samyang Corporation was found to have colluded the prices of sugar, flour, starch, and starch sugar, and was fined successively in March, July, and August of this year.

CJ CheilJedang (KRW 373.028 billion), which came in second place, also faced a withdrawal of fines after all three collusions were discovered.

Sajo CPK (KRW 201.32 billion), ranked 3rd, was fined by the Fair Trade Commission for starch and starch sugar, and Sajo Dongawon (KRW 183.097 billion), ranked 4th, was fined for collusion in flour.

All 1st to 4th place were found to have engaged in food price fixing for a long period of time. They were all accused in this matter.

Coupang, ranked 5th (KRW 165.558 billion), was found to have committed four violations, including unfair customer attraction, unfair advertising, violation of the Large-Scale Distribution Business Act, and unfair subcontracting practices.

The company that received the most sanctions was Hyundai Livart, which violated the Fair Trade Commission's laws 59 times during this period.

Hyundai Livart committed bid rigging several times and received 11 warnings and 48 corrective orders from the Fair Trade Commission.

Second place was Hyundai L&C (9 violations), also belonging to the Hyundai Department Store Group.

Daebang Industrial Development, Coupang, and Koryo HC (7 times) tied for 3rd place, and Bando Construction, CJ Logistics, Line Construction, and Hoban Industries (5 times more) tied for 6th place.

Representative Park Hong-bae pointed out, "Sugar, flour, and starch sugar are basic raw materials used on people's tables and in the restaurant industry in general," and added, "The fact that major food companies have colluded in these items is an act that adds to the burden on people's shopping carts and the cost burden on small business owners."

He continued, "As collusion has been discovered in several items and sanctions are concentrated on the same company, the effectiveness of measures to prevent recurrence along with the imposition of fines must be checked," and added, "The Fair Trade Commission must thoroughly check the implementation of corrective measures after sanctions and strengthen surveillance of collusion in the food sector."

What to Watch

AI outlook — possibilities, not facts

  • The Fair Trade Commission will strengthen surveillance of collusion in the food sector and conduct additional investigations.

    Likely · Within months

  • Food companies will improve their compliance systems and strengthen internal controls

    Possible · Within months

Open Questions

  • Whether the companies actually implemented corrective measures after imposing fines
  • Were there separate sanctions against individual executives involved in collusion?
  • Are similar collusion practices occurring in other industries?

Related Topics

Samyang Corporation
PeopleSoohyun KimPark Hongbae
OrganizationsFair Trade CommissionCJ CheilJedangSajo CPK
PlacesSejong
TopicsFair Trade CommissionfinecollusionHyundai LivartCJ CheilJedangSajo CPK
This article was originally published by 연합뉴스.

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