Prosecutors Uncover 10 Trillion Won Flour Price-Fixing... Jeong Seongho Urges Prosecution to Demonstrate Capabilities

"Sugar and Flour Companies Lower Prices After Investigation"

Prosecutors who investigated and indicted business operators for price-fixing of flour, sugar, and electricity have been awarded commendations.

On March 4, the Ministry of Justice announced, "We awarded commendations to a total of six prosecutors from the Fair Trade Investigation Division at the Seoul Central District Prosecutors’ Office, including the chief prosecutor, for their strict enforcement against offenders disrupting the livelihoods of ordinary people by distorting food prices, which are fundamental to daily life, and threatening household economies."

Chief Prosecutor Na Heeseok, Deputy Chief Prosecutor Moon Jeongsin, and Prosecutors Lee Hanbyeol, Cho Hyuk, Na Hyewoon, and Choi Minhyeok investigated a case involving price-fixing in the domestic flour market, which is valued at approximately 6 trillion won, by oligopolistic flour milling companies. As a result, 20 individuals, including the CEOs of six milling companies such as Daehan Flour Mills, Sajo Dong-A One, and Samyang Foods, were indicted.

Award Ceremony for Excellence in Fair Trade Investigation Prosecutors. Ministry of Justice

The team also investigated a case in which three sugar companies colluded on sugar prices, indicting two executives—Kim, former head of food business at CJ CheilJedang Korea, and Choi, CEO of Samyang Foods, both top executives of the country’s leading sugar manufacturers—under detention, and 11 others without detention.

They further uncovered collusion among 10 companies, including Hyosung, Hyundai, and LS, in 145 bids for gas-insulated switchgear ordered by Korea Electric Power Corporation, where they pre-arranged successful bidders and bidding prices.

The investigation team indicted four employees from four companies who led the collusion under detention and 15 others without detention. The scale of this collusion was found to be 677.6 billion won. The total collusion amount uncovered by prosecutors amounted to 9.9404 trillion won.

After the award ceremony, Minister of Justice Jeong Seongho commented at a meeting, "Following the investigations, sugar and flour companies reduced their prices," and added, "I urge the prosecution to continue demonstrating its capabilities in areas directly affecting people's livelihoods, especially as changes to the criminal justice system approach."

The Ministry of Justice stated, "We will actively respond to collusion crimes that disrupt market order and the economy of ordinary citizens to ensure that offenders are punished proportionally to their responsibility."

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