The Korea Fair Trade Commission (KFTC) has commenced formal deliberations on a major price collusion case involving four starch sugar manufacturers: Daesang, Sajo CPK, Samyang, and CJ CheilJedang. The case centers on allegations that these companies engaged in repeated and organized price fixing of starch sugar products over a period of seven years and six months, from May 2018 to October 2025. Starch sugar, produced from corn, is used in both food and industrial applications, making its pricing critical to multiple sectors. The KFTC’s investigation was triggered during a separate probe into sugar price collusion, leading to a focused inquiry into the starch sugar market.
The alleged collusion affected a related sales volume estimated at over KRW 6.2 trillion, underscoring the broad economic impact. The companies under scrutiny manufacture and sell starch sugar, which includes products such as syrup, glucose, and high-fructose corn syrup. These products are essential raw materials for food manufacturers, bakeries, noodle producers, and industrial users like paper and steel companies. The KFTC’s findings suggest that the collusion may have led to sustained higher prices, affecting both consumer goods and industrial supply chains.
The review process began on March 5, 2026, when the KFTC sent its investigative report to the four companies and submitted it to the Commission. The companies have eight weeks from receipt to submit written opinions and request access to evidence, ensuring their right to defense. After these procedures, the Commission will convene to make a final determination, which could include corrective orders, fines up to 20% of affected sales, and criminal referrals for involved executives. The KFTC emphasizes swift action due to the case’s direct impact on consumer prices and market fairness.
Frequently asked questions include: What is starch sugar and why is it important? Starch sugar is derived from corn and used in a wide range of food and industrial products, making its pricing influential across the economy. What penalties could the companies face? The Commission may impose fines up to 20% of related sales and pursue criminal charges against responsible executives. What is the timeline for resolution? The companies have eight weeks to respond, after which the Commission aims for a prompt final decision. The KFTC is also investigating related bid-rigging and by-product price collusion, with results expected soon.
The Korea Fair Trade Commission’s investigation into starch sugar price collusion is notable for its scale and thoroughness, covering seven years and significant sales volumes. The Commission’s approach, including potential fines and criminal referrals, reflects a strong stance against anti-competitive practices. The case’s direct link to consumer prices and industrial supply chains underscores its importance for both economic stability and public welfare. The ongoing review and related investigations signal that regulatory scrutiny in Korea’s food and industrial markets will remain high. Stakeholders should prepare for possible changes in pricing and compliance requirements.