Prosecutors in South Korea have launched a forced investigation into four domestic food companies, including CJ CheilJedang and Daesang, over allegations of price collusion in the starch sugar market.
On the 23rd, the Seoul Central District Prosecutors' Office commenced a search and seizure operation against four domestic food companies: CJ CheilJedang, Daesang, Samyang, and CPK. These companies are suspected of having violated fair trade laws by colluding to fix prices in the market for starch and sugar products. This action follows the government's commitment to strictly address practices that harm consumer price stability, particularly in response to rising costs of living.
The investigation aligns with President Lee Jae-myung's recent statements emphasizing the need for stringent punishment against collusive behaviors across various sectors, including essential goods like sugar and flour. During a recent meeting, the president pointed out the deeply rooted issue of anti-competitive collusion in the economy and stressed that severe penalties should follow collusion profits. The legal actions taken against the food companies are a part of broader efforts by the government and prosecutors to ensure fair market practices in South Korea.
This new inquiry continues a trend of increased scrutiny on companies engaging in collusion, as illustrated by a previous investigation conducted last year that implicated 16 corporations and 36 individuals in collusive practices involving flour and sugar. Given this context, the current investigation signifies a sustained effort to uphold fair competition and maintain consumer protections against price-fixing schemes within the nation's food industry.
