Prosecutors Re-seek Arrest Warrant for CEO Im Over 10 Trillion Won Starch Sweetener Collusion Allegations

Prosecutors have re-filed for an arrest warrant for Daesang CEO Im, who is suspected of price collusion in the 10 trillion won starch sweetener market, approximately one month after their initial request was rejected. CEO Im's pre-arrest hearing is scheduled to take place on the morning of the 14th at the Seoul Central District Court. Previously, on the 31st of last month, the court denied arrest warrants for CEO Im and Sajo CPK CEO Lee, but issued one for Mr. Kim, the head of Daesang's starch sweetener business division.

Daesang and Sajo CPK are the top two companies in the starch sweetener industry. Prosecutors have uncovered evidence of collusion exceeding 10 trillion won over the past eight years, primarily involving these firms. The prosecution is investigating allegations that these companies predetermined starch sweetener sales prices and colluded on prices during the bidding process involving major beneficial owners.

Such collusion has led to price hikes for essential goods directly impacting public life and has undermined market competition. Recently, prosecutors have been focusing on investigations into price-fixing schemes for essential items closely related to daily life, such as flour, sugar, and electricity, and have brought 52 executives and employees involved in collusion amounting to approximately 10 trillion won to trial by last month.