South Korea’s Fair Trade Commission (KFTC) executed on-site inspections at seven major rice milling and sales companies, including CJ CheilJedang and Daehan Mills, on the 19th. Authorities issued search and seizure warrants targeting bids for government grain procurement contracts from Haedang Grain Corp.
Suspected Bid Rigging in Grain Deals
The KFTC imposed Article 40 administrative measures on these seven firms for alleged collusion in large-scale government procurement bids. Companies involved face potential liabilities for costs such as individual handling, water usage, transport, and grain acquisition. Similar audits have already uncovered irregularities.
Prior Investigations Reveal Extensive Collusion
Audit findings from the 2nd highlighted collusive practices among rice milling sales firms, including Daehan Mills, Sajo Donga One, Samyang Corp., Daesun Mills, Samhwa Mills, and Hantab. From late 2020 through 2025, these entities coordinated on rice quotas, allocation changes, pocket sizes, and other parameters. The total collusion value reaches 5.9913 trillion won.
Prosecutors have indicted six companies and 14 executives in related cases.
Upcoming Sanctions and Historical Context
Following the inspections, the KFTC plans to convene a full committee to determine final sanction levels. Officials anticipate a decision by mid-next month. A KFTC planning deputy director noted that details on the penalties will emerge around that time.
In a prior incident involving CJ CheilJedang, Samyang Corp., and Daehan Mills, authorities levied fines totaling 408.3 billion won—the second-largest after a 2010 LPG cartel case fining six firms 668.9 billion won. Analysts expect substantial fines in this rice bid-rigging probe as well.
