CJ CheilJedang and Samyang Former Executives Receive Suspended Prison Sentences for Sugar Price-Fixing... Companies Fined 200 Million Won

"Culpability Is Not Light, but No Structure for Excessive Profits"

Former and current executives of CJ CheilJedang and Samyang Corporation, who were brought to trial on suspicion of large-scale collusion over sugar prices, have received suspended prison sentences.

On April 23, the Seoul Central District Court’s Criminal Division 5 Single Judge (Presiding Judge Ryu Jimi) sentenced former CJ CheilJedang Korea Food Division Head Kim and former Samyang Corporation CEO Choi, who were indicted for violating the Monopoly Regulation and Fair Trade Act, to two years and six months in prison, suspended for three years, and a fine of 100 million won each. Nine other former and current executives who were also brought to trial on the same charges each received suspended prison sentences and fines. Both CJ CheilJedang and Samyang Corporation were fined 200 million won each.

The court stated, "Both companies had previously been investigated by the Fair Trade Commission for wheat flour and sugar price-fixing, and had their criminal charges exempted or fines reduced through the leniency program for whistleblowers, yet the same executives committed the offenses again. Even if the collusion occurred in the inter-company transaction market, the ultimate harm may be passed on to consumers, so the culpability is not light."

However, the court also explained, "Given that international raw sugar prices are publicly disclosed, and considering price negotiation power, raw sugar price trends, and exchange rates, it does not appear that excessive profits were made through collective action. The defendants have admitted to the crime, expressed remorse, pledged to strengthen compliance training for executives and employees, and to establish an internal control system to prevent recurrence. Responsible parties also appear to have had an opportunity for reflection through more than five months of detention."

Previously, prosecutors had sought three years in prison and a 100 million won fine for former division head Kim, and two years and six months in prison with a 70 million won fine for former CEO Choi. Investigations found that, over a period of about four years, these companies jointly engaged in unfairly restricting competition with other businesses based on raw sugar price movements. The scale of the collusion reached approximately 3.2715 trillion won. During the period of the offense, sugar prices were raised by up to 66.7%. Even after factors that should have lowered raw sugar prices emerged, the price remained 55.6% higher compared to pre-collusion levels.

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