W2.2 Trillion in Antitrust Fines on Food Firms Over 10 Years, 83% Levied This Year
Over the past 10 years, 61 food companies have been sanctioned for collusion, with total surcharges amounting to 2.1911121 trillion won. Of that, 83.0% was concentrated in this year, when the sugar, flour, and starch syrup cartels were uncovered. This is according to data on food industry cartel enforcement and surcharges over the past 10 years, submitted by the Fair Trade Commission to Rep. Yoon Jun-byung of the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee (Democratic Party, Jeongeup-si and Gochang-gun, North Jeolla Province). The 27 companies caught this year were hit with 1.817779 trillion won in surcharges, accounting for 83.0% of the 10-year total — the result of successive major cartels exposed in basic raw materials essential to the public diet and food processing.
In the sugar sector, price collusion was uncovered among three companies — CJ CheilJedang, Samyang Corp., and Daehan Sugar. In flour, seven companies were sanctioned: Daehan Flour Mills, Sajo DongA One, CJ CheilJedang, Samyang Corp., Daesun Flour Mills, Hantop, and Samhwa Flour Mills. In the starch and starch syrup sector, four companies were caught: Daesang, Samyang Corp., Sajo CPK, and CJ CheilJedang. This year also saw a cartel among livestock companies over E-mart's pork delivery and purchase bidding.
Food sector cartels have persisted in the past as well. In 2017, 27 suppliers colluded in bidding for military catering contracts commissioned by the Defense Acquisition Program Administration and were fined 33.565 billion won. In 2021, sevenSamgyetang (ginseng chicken soup) distributors colluded and were fined 25.139 billion won, and in 2022, 35 companies in total were caught — 16 in fresh chicken meat, 9 in native chicken, 9 in duck, and 6 in frozen desserts — with surcharges of 314.638 billion won imposed.
Surcharges were concentrated among top-tier companies. The top 10 firms paid 1.857588 trillion won, or 84.8% of the total. Samyang Corp., which took part in all three cartels — sugar (13.0251 billion won), flour (9.4787 billion won), and starch syrup (21.034 billion won) — was fined 43.5378 billion won, ranking first. CJ CheilJedang came in second (37.3028 billion won), followed by Daesang in third (23.4141 billion won).
Of the total amount imposed, 60.0884 billion... (correction: 600.884 billion won), or 27.4%, was reduced through the leniency program for voluntary reporting and similar measures. The uncollected amount stands at 1.337322 trillion won, or 61.0% of the total. Of that, 933.551 billion won has not yet come due, 394.234 billion won in collection has been suspended pending administrative litigation and stays of execution, and the amount in outright arrears is 9.537 billion won.
Rep. Yoon Jun-byung criticized the situation, saying, "Collusion by oligopolistic food companies in staple items that form the foundation of the nation's dinner table and the roots of the food processing industry is a clear betrayal of the public and a serious market-distorting crime," noting that moral hazard — leniency deals, legal battles, and delayed collection through stays of execution — has become routine practice.
