South Korean food industry price collusion

The South Korean Fair Trade Commission (KFTC) has imposed approximately 2.2 trillion won in fines on 61 food companies for colluding on the prices of essential raw materials, such as sugar, flour, and starch, between 2017 and September 2026. A significant portion of these fines—83% of the total—was issued this year, with Samyang Corp, CJ CheilJedang, and Sajo CPK receiving the largest penalties. However, substantial amounts have been mitigated through leniency programs or remain uncollected due to administrative litigation.

Following these sanctions, lawmakers have criticized the effectiveness of the current penalty system. Analysis of 237 collusion cases indicates that actual fines average only 5.85% of relevant sales revenue. While the fine-to-revenue ratio rose to 11.90% this year due to major sugar and flour cases, critics note that even ‘very serious violations’ often see reduced penalties during adjustment stages. In response, Representative Han Chang-min has proposed introducing punitive damages and class action lawsuits to create a more effective deterrent against recurring cartels.