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South Korea Raids Top Chicken Chains in Price-Fixing Investigation

By  |  October 6, 2026
price-fixing

South Korea’s antitrust watchdog has opened an investigation into three of the country’s largest fried-chicken franchises over possible price coordination, intensifying scrutiny of restaurant prices that have remained elevated even as the cost of raw chicken has fallen sharply.

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    The Korea Fair Trade Commission sent investigators to the headquarters of bhc, BBQ and Kyochon Chicken on Oct. 6 to obtain materials related to potential price-fixing, according to BigGo Finance. The report said personnel from the regulator’s Cartel Investigation Bureau took part in the operation.

    The inquiry centers on whether the companies coordinated decisions to set or maintain consumer prices, BigGo Finance reported. It comes as consumers and policymakers question why lower poultry costs have yet to translate into cheaper fried chicken.

    Broiler chickens commonly used by fried-chicken restaurants were priced at 3,308 won ($2.50) per kilogram last month, a decline of 37.7% from six months earlier, according to the report. Prices for prominent menu items at major franchises, meanwhile, have remained near 23,000 won.

    The issue has also drawn attention from President Lee Jae-myung. On Sept. 30, Lee shared a news report about the divergence between falling broiler costs and retail chicken prices on social media and said he would examine the issue, according to BigGo Finance. The KFTC subsequently began reviewing how the companies determine prices and how costs are divided between franchise operators and their headquarters.

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    The chicken industry has pushed back against the suggestion that declining poultry prices should automatically lead to lower menu prices. Industry representatives say restaurants face a broader set of expenses, including wages, logistics, cooking oil, packaging, delivery-platform charges and store operating costs, according to the report. Those expenses can offset savings from cheaper raw chicken.

    Read more: Federal Court Narrows Turkey Price-Fixing Lawsuit, Clears Perdue and Foster Farms

    Companies and industry representatives also argue that franchisees ultimately determine retail prices, limiting the ability of corporate headquarters to impose uniform prices across stores. They have further said that headquarters absorbed some increases when poultry costs previously rose rather than immediately passing them on to consumers, BigGo Finance reported.

    The three chains have not raised their headline prices at the same time. Kyochon last increased prices in April 2023, followed by bhc in December 2023 and BBQ in June 2024, according to the report. Their prices have since remained broadly unchanged.

    The KFTC investigation is expected to examine documents and other materials obtained from the companies to determine whether there was coordination in setting or maintaining prices, BigGo Finance reported. Any penalties would depend on the regulator’s findings.

    The investigation could have broader implications for South Korea’s franchise restaurant industry, where persistent food prices have become a source of consumer concern. Even if regulators find no evidence of collusion, the probe is likely to keep attention focused on how quickly falling commodity costs should be reflected in what consumers pay.

    Source: BigGo Finance