Korean Broiler Association: "Fair Trade Commission's Price Collusion Sanctions Are Measures That Do Not Consider Industry Characteristics"

Fair Trade Commission imposes fines on 16 businesses including Harim
Korea Broiler Association "Measures disregard fresh meat characteristics"

[Asia Economy Reporter Song Seung-yoon] The Fair Trade Commission's decision to sanction domestic chicken meat sellers such as Harim and Olpum for collusion in broiler prices and supply has sparked backlash from the broiler industry, which called the ruling "a punishment that disregards the characteristics of fresh meat and the administrative guidance of related government agencies."

On the 16th, the Korea Broiler Association issued a statement saying, "The FTC's sanctions against 16 fresh broiler meat sellers for unfair joint conduct are a decision that does not sufficiently consider the characteristics of fresh meat, relevant laws, and the administrative guidance of related ministries such as the Ministry of Agriculture, Food and Rural Affairs," adding, "As a result, businesses face the risk of bankruptcy as they cannot bear the enormous fines."

They stated, "Among the association's 13 member companies, the operating profit margin averaged only 0.3% from 2011 to 2020, and the relatively large four listed companies had a margin of about 0.0002%, indicating no unfair profits, yet these appeals were not accepted," and argued, "Even if businesses handed over all operating profits accumulated over 10 years, it would still be far from enough to pay the fines imposed by the FTC."

The association warned, "This ruling will first harm the farming households contracted with affiliated businesses, and chicken meat consumer prices will rise," adding, "The market dominance of a few large companies will increase, imported chicken will encroach on the domestic market, and the chicken industry could collapse."

They also contended, "Unlike manufactured goods that allow planned production, livestock products cannot halt growth or delay shipment, making voluntary production control difficult. Due to various external factors such as livestock diseases or market openings, price volatility is high, and if immediate action is not taken when supply and demand issues arise, imbalance occurs rapidly."

The association added, "We will make every effort to re-explain these points during the ongoing FTC review process and to legislate a supply and demand control system suitable for the characteristics of livestock products."

The FTC announced on the same day that it had found 16 businesses, including Harim, which accounts for over 77% of the fresh broiler meat market, in violation of the Fair Trade Act, imposing corrective orders and a total fine of 175.823 billion KRW. For five companies?Olpum, Hangang Food, Dongwoo Farm to Table, Maniker, and Cherrybro?considering the degree of involvement, leadership in the illegal acts, cooperation with the FTC investigation, and past violations, the FTC decided to refer them to the prosecution.

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