The Korea Flour Milling Association announced that its entire board resigned on May 5 in light of an investigation by the Fair Trade Commission (KFTC) that uncovered collusion among seven major flour milling companies in South Korea. The association expressed deep remorse for causing significant disappointment and concern to the public due to price collusion involving flour sales. The board members, including the president and vice president of the association, made the decision to step down to take responsibility and commit to restoring public trust through proper management in the future.

According to KFTC inspectors, the seven companies, which include major players like Daehan Flour Mills, CJ CheilJedang, and Samyang Foods, were found to have colluded on flour pricing and quantity distribution from November 2019 to October 2025, affecting a total sales revenue of approximately 5.8 trillion won. This collusion gave these companies a staggering 88% share in the domestic flour B2B sales market. The inspectors have recommended corrective measures, including orders to reset prices, which has been a topic mentioned recently by President Lee Jae-myung regarding the need to address monopolistic practices to combat high inflation.

On the legal front, prosecutors have filed non-custodial charges against 20 individuals, including executives from all involved companies except for CJ CheilJedang, for violations of the Fair Trade Act. In response to President Lee's comments on collusion and its impact on prices, some companies, including Daehan Flour Mills and Samyang Foods, have recently lowered their flour prices as part of their efforts to mitigate the situation and improve consumer trust.