Prosecutors have concurrently carried out raids on the highest administration of 5 main home flour milling corporations, together with Daehan Flour Mills CEO Track In-seok, who’s suspected of flour price-fixing, in addition to Sajo Dongawon and CJ Cheiljedang, securing key supplies together with their cell phones.
The Seoul Central District Prosecutors’ Workplace Truthful Commerce Investigation Division carried out simultaneous raids on Dec. 11 at main flour milling corporations together with Daehan Flour Mills headquarters in Jung-gu, Seoul, CJ CheilJedang in Jung-gu, Seoul, Sajo Dongawon in Seocho-gu, Seoul, Samyang Corp. in Jongno-gu, Seoul, and Daesun Flour Mills in Yeongdeungpo-gu, Seoul. The raids reportedly encompassed a variety of key supplies that might affirm collusion actions, together with cell phones of firm CEOs, inside report paperwork, assembly supplies, and paperwork associated to cargo quantity changes. Significantly, because the raid targets included the workplace of Track In-seok, who serves as each Daehan Flour Mills CEO and chairman of the Korea Flour Millers Affiliation, the chance has been raised that prosecutors might study whether or not the affiliation was concerned on the organizational degree.
Prosecutors have reportedly confirmed proof that these corporations artificially adjusted flour costs and managed cargo volumes for a number of years, and have launched an investigation on prices of violating the Truthful Commerce Act. Significantly, the investigation is reportedly specializing in the chance that Daehan Flour Mills and Sajo Dongawon, which maintain excessive market shares within the flour market, led the collusion. As flour accounts for a completely massive portion of income for each corporations, making worth fluctuations instantly impression their efficiency, prosecutors are concentrating on figuring out whether or not these corporations fashioned the core axis of the collusion construction.
Beforehand, the Korea Truthful Commerce Fee carried out on-site investigations of seven flour milling corporations in October this 12 months, starting to establish suspected collusion. Nonetheless, on account of structural limitations the place Truthful Commerce Fee administrative sanctions usually take greater than a 12 months, prosecutors seem to have proactively intervened by defining this case as a “crime disrupting the livelihood of bizarre residents.” In truth, the Truthful Commerce Fee has not been in a position to situation sanctions even now, one 12 months and 9 months after launching a sugar collusion investigation in March 2024.
This pressured investigation marks the third case the place prosecutors have instantly addressed suspects who disrupt the livelihood of bizarre individuals. Prosecutors additionally carried out raids on the three main home sugar corporations in September this 12 months with out a Truthful Commerce Fee criticism within the sugar collusion case, and indicted associated events in November. Significantly within the sugar collusion case, as prosecutors instantly launched investigations and accomplished indictments after the Truthful Commerce Fee failed to achieve conclusions for over one 12 months and 6 months, many view that this represents a extra fast response to market disruption actions.
