SEOUL, February 12 (AJP) - South Korea's largest sugar maker CJ CheilJedang has issued a formal apology, saying it will immediately quit the Korea Sugar Association following the Fair Trade Commission’s imposition of a combined 408.3 billion won in fines on three sugar makers for alleged price-fixing.
In a statement on Thursday, the company said it "deeply apologizes for causing concern to customers and consumers” and pledged swift corrective measures, acknowledging the seriousness of the matter.
CJ CheilJedang said it would exit the industry association, which authorities identified as a key channel for collusion, and prohibit contacts between its employees and rival sugar producers.
The company also plans to introduce a “one-strike” rule under which violations lead to immediate dismissal, aiming to eliminate opportunities for coordination.
The firm added it would overhaul its pricing system by disclosing cost factors such as exchange rates and raw sugar prices and introducing a mechanism that automatically reflects those inputs in product prices.
The move is intended to prevent pricing decisions based on competitors’ actions or individual consultations.
CJ CheilJedang also said it would strengthen internal compliance controls by adding external members to its compliance management committee to improve independence and by expanding a voluntary reporting system designed to prevent improper contacts with competitors.
"CJ CheilJedang will place public trust first and work to establish a transparent and fair competitive environment," the company said in the statement.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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