'Chicken Price Collusion' Charges Against Harim, Olpum, Maniker, and Others Denied in First Trial

Chicken meat sales counter at a large supermarket in Seoul city. [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] Poultry meat manufacturers and sellers of broiler and Samgye-tang chicken, who were indicted for artificially raising chicken prices for an extended period, denied the charges at their first trial.

On the 16th at 2 p.m., Judge Yang Hwansung of the Seoul Central District Court Criminal Division 3 presided over the first hearing of six companies?Harim, Olpum, Hangang Food, Dongwoo Farm to Table, Maniker, and Cherrybro?accused of violating the Fair Trade Act.

On this day, the lawyers representing Harim, Olpum, and Hangang Food stated, "We acknowledge the meetings and discussions took place, but we dispute whether the discussions were actually implemented or had any effect," adding, "The actions were carried out for public interest purposes at the request or administrative guidance of the Ministry of Agriculture, Food and Rural Affairs," thereby denying the charges.

Maniker also said, "We do not dispute the basic facts," but added, "We seek judgment on the execution and effect aspects." The Korea Broiler Association and former association president Jeong Mo, who were also indicted for allegedly serving as a channel for discussing collusion among the companies, argued, "These actions were carried out to protect and foster the chicken industry."

Dongwoo Farm to Table and Cherrybro decided to review the records and present their positions at the next hearing.

Judge Yang concluded the hearing by deciding to hold the next session as a preparatory hearing. The preparatory hearing is held before the main trial to confirm the defendant's position on the charges and examine key issues; attendance by the defendants is not mandatory. Judge Yang set the next hearing for October 13 to allow sufficient preparation and requested that subsequent trials be scheduled at intervals of one to two weeks.

According to the prosecution, these companies are accused of directly negotiating the sale prices of fresh broiler meat or discussing production and shipment volumes affecting prices a total of 60 times from November 2005 to July 2017.

The companies were investigated for artificially raising the market price of fresh broiler meat or increasing all price components used in calculating the sale price. 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.

Olpum and Harim are also accused of colluding on the sale prices of fresh Samgye meat 18 times over six years starting from July 2011 using similar methods.

Previously, the Fair Trade Commission only filed complaints against these companies and the Broiler Association, but considering the harm this collusion caused to competitive order, the prosecution exercised its right to request indictment against Olpum CEO A and the former Broiler Association president, who were heavily involved. Subsequently, after receiving additional indictments for these two from the Fair Trade Commission, the prosecution investigated and brought them to trial.

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