"There Was a Reason for Expensive Imported Live Octopus"... Incheon Fisheries Import-Export Association Determines Import Frequency and Wholesale Price

Fair Trade Commission, Corrective Orders and Fines

Distribution Channels of Imported (Chinese) Live Octopus.

[Sejong=Asia Economy Reporter Joo Sang-don] It has been revealed that the Incheon Fisheries Export-Import Association determined the wholesale price of imported live octopus and restricted the number of times member companies could import live octopus or suspended imports for certain periods.

On the 16th, the Fair Trade Commission announced that it had detected such actions by the Incheon Fisheries Export-Import Association and decided to impose corrective orders (including future prohibition orders and notification orders to constituent businesses) along with a total fine of 115 million won.

The Incheon Fisheries Export-Import Association, consisting of 21 businesses engaged in importing live octopus from China, was established in August 2015. Most of the imported live octopus distributed domestically is from China, and most companies continuously importing Chinese live octopus belong to this association.

According to the Fair Trade Commission, from December 2017 to February 2020, the Incheon Fisheries Export-Import Association decided and enforced the live octopus prices (warehouse unit price) supplied by member live octopus importers to distributors. The warehouse unit price was set at a meeting held at 10 a.m. on the day the live octopus was imported.

Additionally, the association decided and enforced the live octopus prices (distribution unit price) supplied by distributors who purchased live octopus from member companies to retailers. The distribution unit price was set to add at least 1,000 won per kilogram to the warehouse unit price.

The Incheon Fisheries Export-Import Association also set periods during which members had to suspend live octopus imports and limited the number of import occasions. To respond to price increase demands from Chinese exporters, from 2017 to 2018, the association prohibited members from importing live octopus during certain periods and reduced the number of import occasions from three times a week to twice a week.

The association also prohibited the joint use of import containers between member and non-member companies. Although live octopus importers could reduce transportation costs by sharing containers, from September 2015 to February 2020, the association prevented member companies from sharing import containers with non-member live octopus importers.

A Fair Trade Commission official stated, "This measure is significant in that it detected and corrected the actions of a business group, to which most live octopus importers belong, that continuously determined wholesale prices and restricted competition in the related market." He added, "The Fair Trade Commission will continue to monitor business groups for acts that undermine competitive order and will strictly sanction any violations of related laws in accordance with principles."

This content was produced with the assistance of AI translation services.