Four food companies, including DaeSang, Sajo CPK, Samyang Foods, and CJ CheilJedang, have been caught colluding on the prices of starch and starch syrup for over seven years. The Fair Trade Commission (FTC) announced that it would impose a record fine of 747.578 billion won on these starch and starch syrup manufacturers.
The FTC revealed on July 7 that the four companies engaged in price-fixing from May 2018 to October 2025. Earlier, prosecutors indicted these companies and their executives in March at the FTC's request.
Starch syrup is widely used in food products such as snacks, bread, and beverages, as well as in manufacturing industries like corrugated cardboard and steel. Consequently, price increases can trigger a domino effect on inflation across various sectors. To mitigate this, the government has applied a 0% tariff on 2 million tons of imported corn, a key raw material, since 2021.
However, during periods of rising international corn prices, particularly due to the Russia-Ukraine war, the companies agreed to raise their selling prices eight times and to lower them less during price drops on five occasions. They set target prices for items like glucose and syrup, encouraging clients to accept prices above these targets.
As a result of this collusion, the selling price of starch syrup surged by 73% during the period of rising international grain prices from May 2018 to November 2022. The FTC noted that the companies managed to minimize declines in operating profits even as corn prices rose. Conversely, during periods of falling corn prices, they limited price reductions, thereby improving their operating profits.
In addition to the fine, the FTC ordered the companies to independently reset their prices to levels competitive with those before the collusion and to report any price changes to the FTC every six months for the next three years. The long duration of the collusion and the fact that these four companies have dominated the starch syrup market for the past 20 years raised concerns about the potential for recurrence.
Nam Dong-il, FTC Vice Chairman, stated, "The calculated related sales amount is 6.0525 trillion won, and we applied a 15% penalty rate for this 'very serious conduct.' During the investigation and review process, there were mitigating factors for four companies and aggravating factors for one company. We will continue to closely monitor collusion in monopolistic markets that significantly impact people's livelihoods and enforce the law strictly without exception when detected."
* This article has been translated by AI.
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