Prosecution Raids Four Firms Including Samyang Corporation and Daesang Over Starch-Sugar Cartel Allegations

Deemed larger in scale than the sugar cartel cases

The prosecution has conducted search and seizure operations at four domestic food companies suspected of colluding in the starch and sugar market.

According to the legal community on the 23rd, the Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office, led by Senior Prosecutor Na Heeseok, carried out search and seizure operations the same day at four oligopolistic starch-sugar market players: Daesang, Samyang Corporation, SajoCPK, and CJ CheilJedang.

After analyzing the structure of the alleged starch-sugar cartel and the scale of the offense, prosecutors concluded that the case is larger in scale than the two sugar cartel cases previously investigated, each worth about 5 trillion won and 3 trillion won, and therefore proceeded to launch a compulsory investigation.

Starch sugar is mainly used as a sweetener in processed foods. Corn syrup, fructose, and oligosaccharides are typical examples, and they are used as raw materials in making snacks, beverages, and dairy products.

The Korea Fair Trade Commission also began an investigation last month into the cartel allegations involving these companies. Since it takes time for the commission to impose administrative sanctions, it appears that the prosecution first defined the case as a "crime disrupting people's livelihoods" and initiated its own investigation.

Yonhap News Agency