Fines, Criminal Charges, and a 500 Billion Won Damages Lawsuit
Legal Burdens Expected to Persist for an Extended Period
CJ Group is currently facing simultaneous "judicial risks" spanning civil, criminal, and administrative proceedings. While a lawsuit is ongoing regarding the Fair Trade Commission's sanctions for unfair support, CJ CheilJedang Corporation has been indicted on charges of collusion worth trillions of won. In addition, a dispute with Gyeonggi Province over the "K-Culture Valley" project has further increased CJ Group's legal burdens, which are expected to persist for the foreseeable future.
Two Cases Against the Fair Trade Commission
Affiliates of CJ Group are engaged in legal battles against regulatory sanctions. In July 2025, the Fair Trade Commission imposed fines and corrective orders on CJ Corporation and CJ CGV, alleging that they unfairly supported CJ Construction and Simuline, which were suffering from capital erosion, by using TRS contracts as a means of credit enhancement and payment guarantees. TRS (Total Return Swap) is a derivative transaction in which interest (fees) is paid in exchange for transferring both credit and market risks of underlying assets. CJ Corporation and CJ CGV filed lawsuits challenging the FTC's disposition, and hearings will be held in March 2026 at the Seoul High Court Administrative Division 7 (Presiding Judge Koo Hoegeun) (Case No. 2025Nu8191).
In August 2024, the Fair Trade Commission imposed fines and corrective orders on CJ Freshway, alleging that from November 2011 to June 2024, the company unfairly supported its subsidiary Fresh One by dispatching personnel and covering labor costs. CJ Freshway filed a lawsuit (Case No. 2024Nu59451) against the sanctions, but on December 17, 2025, the Seoul High Court Administrative Division 6-3 (Presiding Judges Baek Seungyeop, Hwang Euido, and Choi Hangseok) ruled against the plaintiff.
Criminal Trial for "Sugar Price Collusion"
CJ CheilJedang has been implicated in the so-called "sugar price collusion" case. CJ CheilJedang, together with Samyang Corporation and Daehan Sugar, is suspected of agreeing on the range and timing of sugar price changes from February 2021 to April 2025. Prosecutors estimate the scale of the collusion at 3.2715 trillion won, and in November 2025, indicted 13 individuals, including the CJ CheilJedang corporation. The first trial for this case (Case No. 2025Godan5821) is scheduled for January 13, 2026. The case will be presided over by Judge Ryu Jimi of the Seoul Central District Court Criminal Division 5 Single Judge Panel.
5 Trillion Won Civil Suit Over "K-Culture Valley" Project Collapse
A massive civil lawsuit worth several hundred billion won is also ongoing. CJ ENM and its subsidiary CJ LiveCity have filed a damages claim (Case No. 2025Gahap12742) against Gyeonggi Province and Gyeonggi Housing & Urban Development Corporation. After the K-Culture Valley development project in Goyang, Gyeonggi Province, was canceled, Gyeonggi Province imposed delay penalties amounting to approximately 300 billion won. CJ claims that Gyeonggi Province breached its obligation to cooperate and has filed a lawsuit seeking damages of over 516 billion won. The Seoul Central District Court Civil Division 23 (Presiding Judge Kim Dongbin) is currently hearing the case, but a hearing date has not yet been set.
In addition, CJ CGV is facing a lawsuit (Case No. 2025Gahap10406) from Industrial Bank of Korea over unpaid rent for the remaining period after the termination of the lease contract for the CGV Yeonsu Station branch. The disputed amount is around 22 billion won, and the Seoul Central District Court Civil Division 33 (Presiding Judge Choi Jongjin) is hearing the case. The first hearing is scheduled for March 2026.
Lee Sangwoo, The Law Times Reporter
※This article is based on content supplied by Law Times.
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