Prosecutors Indict Harim, Olpum, and 6 Others Including Poultry Association for 'Chicken Price Collusion'

[Asia Economy Reporter Kim Hyung-min] The prosecution has brought to trial a group of fresh chicken meat manufacturers and sellers of broiler and Samgye-tang chickens who have artificially raised chicken prices for a long period.

The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Ko Jin-won) announced on the 28th that six companies, including Harim, Olpum, Hangang Food, Dongwoo Farm to Table, Maniker, and Cherrybro, have been indicted without detention on charges of violating the Fair Trade Act.

According to the prosecution, five companies including Olpum are accused of directly negotiating the sales prices of fresh broiler chicken meat or coordinating production and shipment volumes affecting sales prices a total of 60 times from November 2005 to July 2017. They artificially raised the market price of fresh broiler chicken meat or increased all price factors that constitute the sales price formula. They also reduced discount amounts or discount rates when selling chicken. Additionally, they controlled production by discarding or reducing chicks and hatching eggs and artificially reduced shipment volumes by freezing and stockpiling already produced fresh meat. Two companies, Olpum and Harim, are also accused of colluding on fresh Samgye-tang chicken meat sales prices in the same manner 18 times over six years from July 2011. The Korea Broiler Association, which was used as a channel to discuss the collusion, was also brought to trial.

Previously, the Fair Trade Commission only filed complaints against these companies and the Broiler Association with the prosecution. However, considering the harm this collusion caused to competitive order and aiming to eradicate collusion, the prosecution exercised the right to request prosecution against Olpum CEO Mr. A, who was heavily involved, and the former chairman of the Broiler Association. After receiving additional indictments for these two individuals from the Fair Trade Commission, the prosecution investigated and brought them to trial.

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