The Korea Fair Trade Commission (KFTC) has levied a substantial fine of 408.3 billion won on three sugar manufacturing companies—CJ CheilJedang, Samyang, and Daehan—for colluding to fix sugar prices over the past four years. This fine represents the second-largest amount ever imposed for a collusion case by the KFTC. The investigation revealed that the companies had agreed on the timing and magnitude of price increases and decreases for sugar sold to beverage and snack manufacturers as well as distributors. CJ CheilJedang received the largest individual fine of 150.6 billion won, followed closely by Samyang at 130.3 billion won, and Daehan at 127.4 billion won. The total collusion-related revenue amounted to 3.3 trillion won, indicating the significant economic implications of these unlawful agreements.

In addition to the financial penalties, the KFTC has issued corrective orders prohibiting further violations and mandating the companies to report price changes for the next three years biannually. Initially, the KFTC considered implementing a price-recalculation order, which would allow the government to adjust prices deemed influenced by collusion to match market conditions. However, it concluded that the condition for this action was not met as these companies had already lowered their sugar prices in response to regulatory scrutiny, indicating that their ongoing violations had ceased.

Between February 2021 and April 2025, the three companies allegedly coordinated their pricing strategy in eight instances—six price hikes and two adjustments downward—based on fluctuations in the cost of raw sugar. They agreed on quick adjustments to price hikes whenever raw sugar costs increased, even exerting collective pressure on buyers unwilling to accept higher prices. Conversely, during price declines for raw sugar, they chose to delay price reductions for consumers, showcasing a concerted effort to manipulate the market for their benefit.