South Korea probes food companies over suspected price fixing

South Korea's Fair Trade Commission has begun on-site inspections of major food companies over suspected price fixing and resale-price restrictions, local outlets reported on October 14. Inspectors were sent to companies including Daesang, Ottogi and CJ CheilJedang. The inquiry is the first case handled by the commission's newly established priority-investigation unit. ZDNet Korea reported that the regulator acknowledged inspections but would not confirm the names of the companies or the specific allegations. [ 2 , 3 , 7 ]

The reported inquiry covers six processed-food categories: kimchi, tofu, oils and fats, gift sets, ready-to-eat rice and sauces or pastes. Outlets said investigators were examining whether companies had colluded from 2018. The Dong-A Ilbo report described scrutiny of whether companies agreed in advance on price increases, their size and timing. Outlets also reported investigation of suspected resale-price maintenance from 2020, including whether manufacturers set minimum retail prices and thereby restricted discount competition. The inspections were expected to continue through October 20. [ 2 , 3 , 8 , 16 ]

Ottogi told ZDNet Korea that an inspection had taken place but that it had not separately been informed of its purpose or content. Daesang also acknowledged the inspection and said it would cooperate. ZDNet Korea stressed that the visits were a procedure to examine allegations and did not establish unlawful conduct. Coverage linked the inquiry to the commission's focus on unfair practices affecting everyday living costs. The priority-investigation unit expanded an existing seven-person team into a roughly 40-person organisation with three divisions, according to Chosun Ilbo. [ 3 , 5 , 8 ]