Samyang Corporation and Former CJ CheilJedang Executive Admit to 'Sugar Price Collusion' and Express Deep Remorse at First Trial

Samyang Corporation, CJ CheilJedang, and Daehan Sugar
Accused of Four-Year Price-Fixing Collusion
Defendants Admit to Charges

The CEO of Samyang Corporation and a former executive of CJ CheilJedang, both accused of colluding to fix sugar prices, admitted to the charges and expressed deep remorse during the first trial held on January 13.

At the Seoul Central District Court, Judge Ryu Jimi of Criminal Division 5 held the first hearing for the case involving violations of the Monopoly Regulation and Fair Trade Act by CEO Choi of Samyang Corporation, former senior executive Kim who oversaw Korean food at CJ CheilJedang, and 11 others-a total of 13 defendants.

On this day, the defense attorneys for the defendants stated, "We acknowledge the charges and are deeply remorseful." When the judge asked the defendants if they agreed with their attorneys, the defendants replied, "Yes." However, the attorney representing Samyang Corporation added that, for some defendants, "there are aspects that differ from the facts."

The court announced that it would separate the trial procedures by company. The trial for the defendants from CJ CheilJedang is scheduled to begin on February 12, while the trial for the defendants from Samyang Corporation will commence on March 26.

They are accused of colluding to fix sugar prices, including the timing, scale, and extent of price changes, in advance from February 2021 to April last year, resulting in collusion worth 3.2715 trillion won. Prosecutors suspect that this collusion led to sugar prices increasing by up to 66.7% compared to before the collusion occurred. Last November, arrest warrants were issued for Kim and Choi on the grounds that there was a risk of evidence destruction.

According to prosecutors, the sugar price collusion among the three leading domestic sugar companies-CJ CheilJedang, Samyang Corporation, and Daehan Sugar-was discussed at the executive and top management level before being carried out. During the collusion discussions, the three companies negotiated strategies for dealing with their main client, Lotte Chilsung Beverage, and shared Lotte's responses as they proceeded with the sugar price increases. However, Daehan Sugar and its executives and employees, who are also suspected of participating in the collusion alongside Samyang Corporation and CJ CheilJedang, were excluded from this round of prosecution.