Prosecutors raided the headquarters and factories of four leading food companies on February 23 amid suspicions of price-fixing in the starch sugar market.
Companies Targeted in Investigation
The Seoul Central District Prosecutors’ Office Public Security Division, under Deputy Chief Prosecutor Na Hui-seok, executed search and seizure warrants at Daesang, Samyang, Sajo CPK, and CJ CheilJedang. These firms allegedly benefited from coordinated pricing in starch sugar products, including maltodextrin, high-fructose corn syrup, and oligosaccharides.
Investigators seized documents from company headquarters that confirm collusion activities. Analysis of the scheme’s structure and scale prompted decisions to seek arrest warrants for five executives from two smaller firms involved.
Consumer Impact and Broader Concerns
Starch sugar serves as a key ingredient in processed foods, beverages, and dairy products. Sources indicate that cartel behavior by major producers drives up consumer prices across multiple sectors.
Officials express concerns that unchecked price coordination harms competition and burdens everyday shoppers.
Connection to Prior Cases
The raids extend to companies linked to recent salt and rice price-fixing probes. Prosecutors conducted these operations independently, without joint efforts from the Fair Trade Commission.
By classifying the collusion as “civil economic violence,” investigators aim to accelerate proceedings and broaden the scope, including reexamining related parties in ongoing cases.
