South Korea Fines Pork Processors for Price-Fixing in Retail Supply Deals

The penalties follow an investigation by the Korea Fair Trade Commission (KFTC), which determined that the companies coordinated bid and quotation prices when supplying pork products to the country’s leading discount retailer E-Mart, according to a statement from the regulator. Authorities said the collusion undermined fair competition in the market for essential food products.

We’d love to be your preferred source for news.

Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

Add as Preferred Source

In addition to the financial penalties, the KFTC issued corrective orders to the companies involved, according to a statement. The regulator also referred six of the nine processors to prosecutors for further investigation over their role in the alleged price coordination.

Regulators said the companies’ actions involved coordinating pricing strategies during bidding and quotation processes tied to the supply of pork products. The conduct effectively limited competition among suppliers and distorted the pricing structure for products sold through the retail chain, per a statement from the commission.

The enforcement action comes as South Korean authorities step up scrutiny of potential collusion in the food industry amid rising consumer prices. Officials have expressed concern that secret agreements between competing firms could contribute to higher costs for everyday goods.

President Lee Jae Myung has recently called for stronger penalties against companies that engage in covert agreements that manipulate commodity prices.

Source: Korean Times