South Korean prosecutors have indicted 52 executives from a dozen companies for their alleged involvement in extensive price-fixing and bid-rigging schemes affecting essential consumer goods and infrastructure-related products. The Seoul Central District Prosecutors Office announced on Monday that the indictments have been issued progressively since September last year.(Korea Times)
According to the prosecution, the executives orchestrated collusive practices involving nearly 10 trillion won (approximately USD 6.84 billion), significantly impacting the prices of flour, sugar, and electrical components—sectors closely linked to everyday living costs.
Flour Price-Fixing
In the flour sector, 20 executives from six major producers—Daehan Flour Mills, Sajo Donga One, Samyang, Daesun Flour Mills, Samhwa Flour Mills, and Hantop—have been referred to trial without detention. Prosecutors allege that these firms, operating in an oligopolistic market structure, coordinated the scope and timing of flour price changes between January 2020 and October 2025.
The prosecution estimates the value of the price-fixing conduct at approximately 5.99 trillion won. During the six-year period under investigation, flour prices reportedly increased by as much as 42.4 percent, raising concerns about significant harm to consumers and market competition.
Sugar Market Collusion
In the sugar market, CJ CheilJedang and Samyang are accused of colluding to coordinate the scope and timing of price adjustments between February 2021 and April 2024. The prosecution values the alleged sugar price-fixing scheme at 3.27 trillion won.
Sugar prices rose by up to 66.7 percent during the relevant period. Two executives from the implicated sugar companies were indicted following arrest, while nine others were referred to trial without detention.
Bid Rigging in the Electricity Sector
The investigation also uncovered bid-rigging practices in the electricity sector involving 10 companies, including Hyosung Heavy Industries, HD Hyundai Electric, and LS Electric. Prosecutors allege that the companies colluded in bids worth 677 billion won for projects awarded by the state-owned utility Korea Electric Power Corp. between March 2015 and September 2022.
Four executives were indicted following arrest, while an additional 15 executives were charged without detention.
Enforcement Significance
The prosecution point out that the alleged conduct disrupted market order, inflated prices of essential goods, and imposed a direct burden on consumers. The cases represent one of the largest criminal enforcement actions against cartel behavior in South Korea, underscoring authorities’ increasing focus on hard-core antitrust violations with direct social and economic impact.