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South Korea Indicts 13 in Major Sugar Price-Fixing Case

By  |  November 26, 2025
Price-Fixing

The Fair Trade Investigation Division of the Seoul Central District Prosecutors’ Office announced on the 26th that 13 individuals have been indicted in connection with what officials describe as a widespread price-fixing scheme within South Korea’s sugar industry. According to a statement, a former CJ CheilJedang chief executive and the Samyang Corporation CEO were taken into custody, while nine others will stand trial without detention. The corporate entities of CJ CheilJedang and Samyang Corporation were also charged under joint responsibility rules that hold companies accountable for employees’ unlawful conduct. TS Corporation, however, avoided prosecution after cooperating under the leniency program, per a statement from investigators.

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    The case centers on allegations that CJ CheilJedang, Samyang Corporation, and TS Corporation coordinated pricing decisions over roughly four years, starting in February 2021. The three firms, which together hold a dominant position in the domestic sugar market, allegedly agreed on when and how much to raise consumer prices. Prosecutors said the arrangement contributed to price increases of up to 66.7% during the period in question, despite later drops in global raw sugar costs. The scale of the collusion was identified at 3.2715 trillion won. Prosecutors noted, “During the period of the crime, sugar prices increased by up to 66.7%, but despite subsequent factors that should have led to a decline in raw sugar prices, the reductions remained minimal.”

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    Read more: Sugar Price-Fixing Case Scaled Back but Not Dismissed

    Officials also emphasized the broader economic impact. According to a statement from the Seoul Central District Prosecutors’ Office, domestic sugar prices surged 59.7% between 2020 and 2024—more than quadruple the 14.18% rise in the overall price index.

    Authorities opened the investigation in September, executing search and seizure operations at the companies and the homes of related personnel to gather evidence. Prosecutors also requested that the Korea Fair Trade Commission file an official complaint, which was submitted in stages. On the 19th, arrest warrants for the two top executives were approved, allowing prosecutors to detain them pending trial.

    As the legal process moves forward, prosecutors signaled that enforcement efforts will continue. The Seoul Central District Prosecutors’ Office stated, “We will continue to actively respond in accordance with the law and principles to various fair trade violations that disrupt competitive order and destabilize the national economy.”

    Source: CHOSUN