A PYMNTS Company

South Korea Paint Maker KCC Drops Price Hike After Regulatory Scrutiny

By  |  April 7, 2026

KCC, a major South Korean paint manufacturer, has withdrawn plans to raise product prices, becoming the latest company to fall in line with the government’s efforts to curb inflation.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The company had earlier informed distributors of a planned price increase of between 10% and 40%, citing higher petrochemical costs linked to the war in Iran. The adjustments were due to take effect April 6.

    However, KCC said Wednesday it had decided to scrap the plan. “We decided to withdraw the plan to help ease consumers’ financial burden in line with the government’s price stabilization policy,” a company official said, according to a statement.

    The official added that the company is currently operating at a loss under existing prices but will seek ways to limit financial damage while carefully managing future pricing. “Although our current pricing structure results in losses with each sale, we plan to explore ways to minimize losses while closely monitoring market conditions,” the statement said.

    The reversal follows a series of on-site inspections last month by South Korea’s Fair Trade Commission (FTC). According to authorities, the regulator visited the Korea Paint & Printing Ink Industry Cooperative, KCC headquarters and four other paint makers as part of an investigation into suspected collusion.

    Per a government statement, the probe was launched after multiple companies announced price hikes in close succession, raising concerns about coordinated behavior.

    Industry officials expect KCC’s decision could prompt similar moves by competitors. Noroo Paint & Coatings and SP Samhwa, which had already raised prices, said they are reviewing measures to ease the burden on customers, including potential reductions.

    The paint sector is not alone. In South Korea’s food industry, several companies have frozen or lowered prices as the government steps up investigations into alleged collusion among flour and sugar producers.

    Despite rising costs and supply disruptions, particularly in petrochemical-linked materials, firms have shown reluctance to pass on increases under mounting regulatory pressure.

    “We thank food companies for voluntarily cutting prices and many other companies for refraining from price hikes despite rising costs following the war in the Middle East,” FTC Chairman Ju Biung-ghi said Wednesday, according to a statement.

    He added that continued cooperation between businesses and the government would help sustain price stability.

    Similar pressure has been applied in the energy sector. Last month, refiners pledged to support efforts to stabilize fuel prices after prosecutors raided their headquarters and the Korea Petroleum Association as part of a separate collusion probe.

    Source: Korea Times