CJ CheilJedang and Samyang Corporation to Withdraw from Sugar Refiners Association... Ban on Contacts Between Sugar Companies

CJ CheilJedang: "Applying a 'one-strike-out' policy... Strengthening internal disciplinary measures"
Samyang Corporation: "Prohibiting volume consultations... Immediate reporting system for collusive proposals"

CJ CheilJedang and Samyang Corporation have decided to withdraw from the Korea Sugar Refiners Association. On the 12th, the Korea Fair Trade Commission confirmed that the three sugar refiners CJ CheilJedang, Samyang Corporation, and Daehan Sugar Industry colluded to fix sugar prices in business-to-business (B2B) transactions over a period of about four years, and imposed a total provisional fine of 408.3 billion won and issued corrective orders.

CJ CheilJedang issued a statement saying, "We deeply apologize for causing concern to our customers and consumers," and added, "We recognize the gravity of this matter and will promptly implement recurrence prevention measures so that such an incident will never be repeated."

CJ CheilJedang has decided to fundamentally prohibit its executives and employees from contacting other sugar companies and to strengthen internal disciplinary measures, including applying a "one-strike-out" policy in case of violations.

The company also plans to introduce a transparent "price-setting system" that discloses information such as exchange rates and raw material prices and sets prices in linkage with costs.

It will also strengthen its internal control system by enhancing the role and functions of the Compliance Management Committee and introduce a voluntary reporting system to block contacts between employees and competitors.

Samyang Corporation Corporate Identity

Samyang Corporation also announced that it will establish a system that prohibits discussions on sales volumes and requires immediate reporting when a collusive proposal is made.

Samyang Corporation stated, "We humbly accept the results of the Fair Trade Commission's investigation," adding, "We take seriously the fact that there were shortcomings in some B2B sales practices and in our internal management system."

Samyang Corporation will revise its ethical management principles and implementation guidelines to create provisions prohibiting price and volume consultations and requiring immediate reporting when a collusive proposal is made. It will also conduct a full-scale inspection of sales practices and transaction processes across all business divisions and correct any areas that could constitute violations.

In line with the Fair Trade Commission's recommendations, the company plans to establish and continuously operate a Fair Trade Compliance Program (CP) and to introduce a system that strengthens anonymous reporting and monitoring.

CJ CheilJedang and Samyang Corporation have also decided to withdraw from the Korea Sugar Refiners Association, an interest group of sugar manufacturers. Established in 1955, the Korea Sugar Refiners Association has played roles such as external communication on behalf of its member companies and support for raw material procurement, but has been criticized as a potential channel through which sugar companies could make contact with one another.

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