Fair Trade Commission Investigates Starch Sugar Collusion Following Sugar and Flour Cases

Four Companies Including Daesang, Samyang, Sajo CPK, and CheilJedang

Yonhap News Agency

The Korea Fair Trade Commission announced on January 9 that it is investigating allegations of collusion in the domestic starch sugar market.

Joo Byungki, Chairperson of the Korea Fair Trade Commission, stated at a New Year's meeting with reporters held in Sejong City the previous day, "In addition to sugar, pork, and flour, which have already been reported in the media regarding collusion in sectors affecting people's livelihoods, we have recently detected suspicious activities related to starch sugar and are currently conducting an investigation."

Chairperson Joo added, "During last month's presidential work briefing, I mentioned that a dedicated team would be established to swiftly investigate cases of collusion affecting people's livelihoods. If any illegal activities are confirmed, we will take strict action."

Starch sugar refers to products such as corn syrup, oligosaccharide, and fructose made from corn starch. It is used as a raw material in processed foods like beverages, snacks, and dairy products, and plays a role in determining the prices of these processed foods.

According to industry sources, the domestic starch sugar market is currently dominated by Daesang, Samyang, Sajo CPK, and CheilJedang. These four companies are reportedly under investigation by the Korea Fair Trade Commission. The commission is examining whether these companies have colluded to fix starch sugar prices over several years, potentially contributing to the rise in processed food prices.

Meanwhile, Chairperson Joo commented on the recent increase in the upper limit for fines to enhance the effectiveness of economic sanctions, stating, "This is not a strengthening of fines, but rather a rationalization of fine levels."

Comparing the maximum fine rates for abuse of market dominance, he noted, "Korea's level of sanctions is much lower than that of other advanced countries," and emphasized, "As companies grow, regulations should also be adjusted to hold them accountable for their social responsibilities."