Fair Trade Commission in Sejong City. [Photo by Yu Dae-gil]
The Korea Fair Trade Commission (KFTC) has determined that the Korea Egg Producers Association's establishment of standard prices for eggs constitutes collusion. On May 14, the KFTC announced it would impose a corrective order and a fine of 594 million won (approximately $5.9 million) on the association for its actions.
From January 2023 to January 2026, the Egg Producers Association set standard prices for various egg sizes (large, extra-large, medium, and small) through regional committees, which were communicated to its member producers. This was intended to prevent egg farmers from being at a disadvantage in negotiations with distributors.
However, the KFTC found that these standard prices effectively influenced actual transaction prices. An investigation revealed that from 2023 to June 2025, the actual prices of eggs closely mirrored the association's established standard prices.
The KFTC concluded that the association's price announcements restricted price competition among its members and led to increased transaction prices. Notably, the association's members accounted for 56.4% of the total number of laying hens in the country, giving them significant market influence.
The KFTC also identified that the association raised its standard prices by 9.4% from 2023 to 2025. As a result, the gap between the standard price and production costs widened from 781 won in 2023 to 1,440 won in 2025, leading to higher consumer prices and increased profits for farmers.
The KFTC classified the association's price-setting activities as illegal and decided to impose a total fine of 594 million won, along with a prohibition order, notification of violations to member businesses, and mandatory training for executives and staff.
Moon Jae-ho, head of the KFTC's Cartel Investigation Bureau, stated, "The fine was determined based on the association's budget of approximately 800 million won approved at this year's general meeting. This clearly establishes that the price-setting practices led by producer organizations are illegal."
Moving forward, the government will take over the role of setting egg standard prices. The Ministry of Agriculture, Food and Rural Affairs announced in March that it would provide information on farm-gate egg prices through the Korea Rural Economic Institute (KREI). Additionally, a 'Egg Price Verification Committee' composed of farmers, traders, and experts will be established to ensure the appropriateness of egg prices.
From January 2023 to January 2026, the Egg Producers Association set standard prices for various egg sizes (large, extra-large, medium, and small) through regional committees, which were communicated to its member producers. This was intended to prevent egg farmers from being at a disadvantage in negotiations with distributors.
However, the KFTC found that these standard prices effectively influenced actual transaction prices. An investigation revealed that from 2023 to June 2025, the actual prices of eggs closely mirrored the association's established standard prices.
The KFTC concluded that the association's price announcements restricted price competition among its members and led to increased transaction prices. Notably, the association's members accounted for 56.4% of the total number of laying hens in the country, giving them significant market influence.
The KFTC also identified that the association raised its standard prices by 9.4% from 2023 to 2025. As a result, the gap between the standard price and production costs widened from 781 won in 2023 to 1,440 won in 2025, leading to higher consumer prices and increased profits for farmers.
The KFTC classified the association's price-setting activities as illegal and decided to impose a total fine of 594 million won, along with a prohibition order, notification of violations to member businesses, and mandatory training for executives and staff.
Moon Jae-ho, head of the KFTC's Cartel Investigation Bureau, stated, "The fine was determined based on the association's budget of approximately 800 million won approved at this year's general meeting. This clearly establishes that the price-setting practices led by producer organizations are illegal."
Moving forward, the government will take over the role of setting egg standard prices. The Ministry of Agriculture, Food and Rural Affairs announced in March that it would provide information on farm-gate egg prices through the Korea Rural Economic Institute (KREI). Additionally, a 'Egg Price Verification Committee' composed of farmers, traders, and experts will be established to ensure the appropriateness of egg prices.
* This article has been translated by AI.
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