The Fair Trade Commission (FTC), through its International Cartel Investigation Department, has submitted an examination report to the Commission concerning alleged unfair joint practices by seven major flour manufacturers and sellers, formally initiating the deliberation process.
The report was filed on February 19, 2026, following a four-and-a-half-month investigation conducted from October 2025 to February 2026. It sets out the facts established by the examiner, the legal assessment of the conduct in question, and proposed corrective measures. The FTC emphasized that the examination report reflects the findings and opinions of the investigating examiner and does not bind the Commission’s final decision, which will be determined after independent review.
The companies subject to the proceedings are Daesun Flour Mills, Daehan Flour Mills, Sajodonga One, Samyang Corporation, Samhwa Flour Mills, CJ CheilJedang, and Hantop. According to the investigation, these firms collectively accounted for approximately 88 percent of the domestic business-to-business flour sales market as of 2024.
The examiner concluded that, from November 2019 to October 2025, the companies repeatedly colluded on flour sales prices and the allocation of sales volumes. The alleged conduct covered both direct transactions with major customers—including ramen, bakery, and confectionery manufacturers—and indirect sales through agencies serving small and medium-sized enterprises. The FTC estimates that the total sales affected by the alleged collusion amount to approximately KRW 5.8 trillion.
In its legal assessment, the examiner determined that the conduct constitutes a serious violation of Article 40(1), Subparagraph 1 (price fixing) and Subparagraph 3 (quantity allocation) of the Monopoly Regulation and Fair Trade Act. The report therefore recommends the imposition of corrective orders and administrative fines. Under the applicable legal framework, the Commission may impose fines of up to 20 percent of the relevant affected sales.
The FTC further noted that prosecutors have already filed charges against the seven corporations and 14 executives and employees following an earlier referral.
The respondent companies are guaranteed full procedural rights, including the opportunity to submit written opinions and request access to evidence within eight weeks of receiving the examination report. Given the case’s direct relevance to food input costs and consumer price stability, the Commission indicated that it intends to proceed with deliberations promptly once procedural safeguards have been completed.