"Let's Raise Prices Together": Jeonnam Meat Companies Fined for Colluding to Fix Black Goat Slaughter Fees

A Total Fine of 1.2 Million Won Imposed on Two Companies

Price-Fixing Scheme in Slaughtering Fees Uncovered

Meat slaughterhouse operators in the Jeonnam region who colluded to fix black goat slaughtering fees will be subject to sanctions by the Korea Fair Trade Commission. This action was taken after it was found that they attempted to unfairly pass on increased costs, resulting from inflation, to livestock farmers and distributors.

On April 16, the Korea Fair Trade Commission announced that it had decided to issue corrective orders and impose a total fine of 1.2 million won on two meat slaughterhouse operators in the Jeonnam region—Gaon Livestock and Noksaek Black Goat—who colluded to fix black goat slaughtering fees between May and July 2024. The fines are 700,000 won for Gaon Livestock and 500,000 won for Noksaek Black Goat, respectively.

As overall costs such as facility maintenance and labor increased due to inflation, these companies conspired to jointly raise slaughtering fees in order to prevent profit deterioration. During their first agreement in May 2024, they decided to increase slaughtering fees by between 5,000 won and up to 10,000 won depending on carcass and meat weight categories.

Specifically, they agreed to increase the slaughtering fee for animals under 15kg by 28.6%, from 35,000 won to 45,000 won, and to charge 55,000 won—a 22.2% increase—for the 15kg to under 45kg category.

When farmers and distributors strongly objected to the price increases and the possibility of a Fair Trade Commission investigation arose, the companies tried to disguise their collusion by making it appear as if they were charging different prices. In their second agreement in June 2024, Gaon Livestock reduced the previously agreed prices by 200 won for each category, creating a superficial difference.

However, despite the slight price difference, users continued to object, and in August 2024, Noksaek Black Goat unilaterally lowered its slaughtering fee by 5,000 won, effectively ending the collusion agreement.

The Korea Fair Trade Commission explained that this measure is significant because it uncovered collusion in the slaughtering service market, which is directly linked to black goat prices, and protected the rights and interests of livestock farmers and distributors. In particular, Jeonnam is the region with the largest number of black goats in the country, and this case represents a stern response to collusion that took advantage of farmers who have no choice but to use nearby slaughterhouses for convenience.

The Korea Fair Trade Commission stated, "Collusion undermines fair competition and causes harm to many economic participants. We will continue to strengthen monitoring of collusion in food sectors closely related to people's daily lives and will take strict action when violations are identified."

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