Flour products are displayed at a supermarket in Seoul, Feb. 8. Yonhap
CJCheilJedangand six other flour makers in Korea have come under an intensive probe by the Fair Trade Commission (FTC) over alleged price-fixing, a move that could lead to penalties totaling up to 1 trillion won ($690 million).
The firms are suspected of having engaged in repeated collusion over flour prices and distribution for nearly six years starting in 2019. The watchdog estimated that sales affected by the alleged cartel activity amounted to approximately 5.8 trillion won during the same period.
The seven firms include CJ CheilJedang, Samhwa Flour Mills, Samyang, Daesun Flour Mills, Daehan Flour Mills, Sajo DongA One and Hantop. According to the FTC, it can impose fines of up to 20 percent of the sales generated from products affected by collusion.
The latest investigation is part of the watchdog’s broader investigation to root out collusive and unfair practices that undermine price stability for essential goods here.
The latest probe, which began in October 2025, focused on the business-to-business (B2B) flour transaction. The seven firms account for a combined market share of 88 percent in the B2B flour market as of 2024.
“The FTC will make every effort to effectively block incentives for collusion through proactive law enforcement against practices that threaten the livelihoods of the public,” an official from the authority said.
The case has drawn heightened attention since September last year, when President Lee Jae Myung publicly raised concerns about possible collusion among food manufacturers. Relevant authorities have since launched investigations of collusive activity in the industry.
President Lee Jae Myung speaks during a meeting with senior aides at the presidential office in Seoul, Thursday. Yonhap
Early this month, three major sugar producers — CJ CheilJedang, Samyang and TS — were slapped with a combined fine of 408.2 billion won for colluding to fix sugar prices.
Source: Korea Times News
