Harim's headquarters in Iksan, North Jeolla Province / Courtesy of Harim
Harim Co., Korea's largest poultry-processing company, said Sunday that a hefty fine over alleged price-fixing stemmed from the government's supply control policy, as it continues two legal battles with the country's antitrust regulator.
In 2022, Harim and its affiliate Orpum Co. filed a lawsuit seeking to overturn the Korea Fair Trade Commission (FTC)'s decision to impose a combined fine of 94.2 billion won ($63.4 million) for colluding to fix fresh chicken prices.
The two companies had filed a similar lawsuit in 2021, challenging a 13 billion-won fine imposed by the FTC over other price-fixing allegations.
Harim said the alleged collusion resulted from the government's supply-and-demand management policy.
"As the case is currently pending in court, we cannot comment in detail," a company official said.
While Harim filed an administrative lawsuit over the fine, shareholders have launched separate legal action against Harim Group Chairman Kim Hong-guk, seeking to hold him personally responsible for the alleged collusion.
The legal battle comes as President Lee Jae Myung has called for tougher penalties against entrenched practices of secretly conspiring with industry rivals to collude on commodity prices.
Following the president's call, prosecutors have launched an investigation, and the FTC is even considering issuing the so-called price recalibration order against the collusion for the first time in 20 years.
Source: Korea Times News
