Starch Sugar Collusion Suspicions... After Daesang, Sajo CPK Cuts Product Prices by 5%

Prices of Major Starch Sugar Products, Including Starch, Starch Syrup, and Fructose, Cut by 3% to 5%
CEO Lee Changjoo: "In Line with the Government's Price Stabilization Policy"

Sajo CPK (CPK), a starch and sweetener (starch sugar) manufacturing and sales company under Sajo Group, is cutting the prices of its major starch sugar products.

On the 23rd, Sajo CPK announced that it will lower the prices of its main starch sugar items, including starch, starch syrup, and fructose made primarily from corn, by 3% to 5%. The rate of reduction will vary depending on the product.

Provided by Sajo Ssipikei.

This measure will be applied uniformly across all domestic distribution channels, including end users and distributors, as well as business-to-business (B2B) and business-to-consumer (B2C) transactions. The company explained that the decision was made to ease the cost burden on clients whose manufacturing costs have risen, after comprehensively considering fluctuations in raw material prices and overall market conditions.

Starch sugar is a raw material used widely across processed foods such as snacks, beverages, and sauces. The industry expects that this price cut will partially reduce cost pressures for food companies and, to some extent, help stabilize consumer prices.

Lee Changjoo, CEO of Sajo CPK, said, "We decided to cut prices to reduce the burden on households and expand benefits for consumers," adding, "We will continue to support the government's price stabilization policy and put into practice co-prosperity with our partner companies."

Previously, on the 13th, Daesang also cut prices of three types of oligosaccharide products under its Cheongjeongwon brand, including Cheongjeongwon Oligosaccharide, Apple Oligosaccharide, and Cooking Oligosaccharide, as well as consumer products such as Cheongjeongwon starch syrup, by a uniform 5%.

Meanwhile, the Korea Fair Trade Commission is currently examining the overall basic food raw material markets directly linked to the cost of living to determine whether there has been collusion. Following sugar and flour, it has expanded the scope of its investigation to the starch sugar market. The Fair Trade Commission is reportedly looking into possible price collusion among four companies that hold an oligopoly in the starch sugar market: Sajo CPK, Daesang, Samyang, and CJ CheilJedang.