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South Korea Probes Major Flour Producers Over Alleged Six-Year Price-Fixing Scheme

By  |  February 22, 2026
price-fixing

South Korea’s antitrust regulator has launched an extensive investigation into seven leading flour manufacturers, including CJ CheilJedang, over allegations of long-running price collusion that could result in penalties reaching as high as 1 trillion won ($690 million).

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    The Korea Fair Trade Commission (KFTC) is examining claims that the companies coordinated flour prices and distribution practices for nearly six years beginning in 2019. According to a statement from the regulator, the total value of sales potentially affected by the suspected cartel activity is estimated at around 5.8 trillion won over the period in question.

    In addition to CJ CheilJedang, the companies under scrutiny are Samhwa Flour Mills, Samyang, Daesun Flour Mills, Daehan Flour Mills, Sajo DongA One and Hantop. Collectively, the seven firms accounted for 88 percent of South Korea’s business-to-business (B2B) flour market as of 2024, per a statement from the KFTC.

    The inquiry, which began in October 2025, is centered specifically on B2B flour transactions. According to a statement from the commission, the regulator has the authority to levy fines of up to 20 percent of the revenue generated from products linked to collusive conduct. If the maximum penalty is imposed, total fines could approach 1 trillion won.

    Read more: South Korea to Sharply Raise Fines for Price-Fixing and Unfair Trade Practices

    The latest action is part of a broader campaign by the KFTC to address anti-competitive practices that may destabilize prices of essential goods. Per a statement from the authority, the effort aims to curb coordinated behavior that could negatively affect consumers and downstream industries reliant on staple food ingredients.

    The investigation has attracted increased public and political attention since September of last year, when President Lee Jae Myung publicly voiced concerns about potential collusion within the food manufacturing sector. Following those remarks, relevant government agencies initiated closer monitoring and expanded investigations into suspected anti-competitive conduct in the industry.

    An official from the KFTC emphasized the regulator’s determination to act decisively. “The KFTC will make every effort to effectively block incentives for collusion through proactive law enforcement against practices that threaten the livelihoods of the public,” the official said.

    The commission has not yet announced a timeline for concluding the probe. If violations are confirmed, the case could mark one of the largest competition enforcement actions in South Korea’s food industry in recent years.

    Source: Korea Times