Three sugar manufacturers in South Korea have issued formal apologies and pledged to implement measures to prevent similar price-fixing incidents following a hefty fine imposed by the Fair Trade Commission.
The South Korean Fair Trade Commission recently levied a fine of approximately 400 billion won on three major sugar manufacturers for colluding to fix sugar prices. In response, the companies, including CJ CheilJedang, Samyang Foods, and Daehan Sugar, issued formal apologies acknowledging the seriousness of their actions and committed to prevent such misconduct in the future. CJ CheilJedang expressed deep regret for causing concerns among customers and consumers and promised to ensure that such incidents do not recur.
The Commission's investigation revealed that between February 2021 and April 2025, these companies engaged in prohibited collusion by coordinating sugar prices in violation of fair trade laws. The financial penalties were divided among the companies, with CJ CheilJedang receiving the largest share of over 1.5 trillion won. In addition to the fines, the Fair Trade Commission has mandated corrective actions, leading the companies to adopt new internal measures to strengthen compliance with regulations.
In the wake of the fine, CJ CheilJedang announced its decision to withdraw from the industry association representing sugar manufacturers and introduced stricter penalties for employees who engage in communication with competitors. It also plans to reform its pricing mechanism to ensure transparency and to prevent any tacit collusion among competitors. Samyang Foods echoed this commitment, acknowledging its shortcomings in internal management and vowing to revise its business practices and trade processes to comply strictly with competition laws. These developments highlight increased scrutiny and regulation of corporate practices in South Korea as authorities seek to promote fair competition in the market.
