Government Emphasizes 'Price Stability Management' Daily... Fair Trade Commission Strengthens Monitoring of Collusion and Unfair Trade Practices

Difficult Price Conditions Expected to Persist This Month Ahead of Lunar New Year
Government to Preemptively Identify and Respond to Inflation Factors

Fair Trade Commission: "Will Strengthen Monitoring and Prevention of Collusion Threatening Livelihoods"

[Asia Economy Reporter Joo Sang-don] The government is reinforcing price management and on-site inspections this month ahead of the Lunar New Year holiday, viewing price increases as inevitable. It is making efforts to preemptively identify inflation factors by sector and respond accordingly to keep prices as stable as possible, while also focusing on monitoring potential cases of shipment volume control and price collusion.

Recently, Lee Ok-won, First Vice Minister of the Ministry of Economy and Finance, chaired the '2nd Vice Ministerial Meeting on Price Relations' and emphasized, "By identifying industry difficulties and price increase factors in advance, we will do our best to preemptively mitigate price increase factors through government support."

He added, "As the Fair Trade Commission recently detected and took action against shipment volume control and price collusion cases in the poultry and ice cream industries, we will strictly respond to similar collusion or unfair trade practices if detected in other industries. To this end, we will strengthen information sharing between relevant ministries and the Fair Trade Commission and ensure the Fair Trade Commission participates in industry meetings held by relevant ministries."

In October last year, the Fair Trade Commission imposed corrective orders and a total fine of 25.139 billion KRW on seven fresh chicken meat manufacturers and sellers?Harim, Olpum, Dongwoo Farm to Table, Cherrybro, Maniker, Sajo Won, and Chamfre?for colluding on prices and shipment volumes of Samgye fresh chicken meat. According to the Fair Trade Commission, these seven companies agreed from July 19, 2011, to July 27, 2017, to raise prices and control shipment volumes of Samgye fresh chicken meat to increase prices. They entrust Samgye chicken farming to farms by providing chicks and feed, then receive fully grown Samgye chickens for slaughter and sale. Farms receive a fixed fee based on the quantity they raise and supply. Samgye refers to small chickens mainly used for Samgyetang (ginseng chicken soup). About half of the consumption occurs during the summer Sambok period.

Earlier on the 4th, the Fair Trade Commission announced its '2022 Work Plan,' stating it would strengthen monitoring and prevention of collusion that threatens livelihoods and hinders innovation and industrial competitiveness. It plans to enhance monitoring of collusion in sectors directly related to livelihoods such as poultry, ice cream, and milk, as well as in areas affecting industrial competitiveness like intermediate goods and transportation.

A Fair Trade Commission official said, "We will ensure the government's strong commitment to price stability and the voices from the field are reflected in policies as quickly as possible," adding, "We will strengthen monitoring of items directly affecting daily living prices, as seen in the recent detection of collusion in poultry and ice cream."