Korea Fair Trade Commission Reduces Sugar Price-Fixing Fines by 99 Billion Won for Cooperation During Investigation and Review

Maximum 10% Reduction Applied at Both Investigation and Review Stages
Uniform 20% Fine Reduction Granted to Three Sugar Companies

The Korea Fair Trade Commission has reportedly reduced fines by nearly 100 billion won for three domestic sugar companies involved in price-fixing, citing their cooperation during the investigation and review process. The sugar price-fixing case involved the three sugar manufacturers colluding over approximately four years to fix both the price and timing of price increases for sugar, affecting a market worth 3.2 trillion won.

Joo Byung-ki, Chairman of the Korea Fair Trade Commission, briefing on the sugar price-fixing case last February. Korea Fair Trade Commission.

According to the decision document on "Unfair Collusive Practices by Three Sugar Manufacturing and Sales Companies," recently released by the Korea Fair Trade Commission on May 6, the commission applied a 20% reduction to the initial calculated fine during its calculation process to determine the final amount. By company, CJ CheilJedang's fine was reduced by 34.6 billion won from 172.9 billion won to 138.3 billion won; Samyang Corporation's fine was reduced by 32.6 billion won from 162.8 billion won to 130.2 billion won; and Daehan Sugar Manufacturing's fine was lowered by 31.9 billion won from 159.2 billion won to 127.3 billion won. As a result, the total fine for the three companies decreased by about 99 billion won from 494.9 billion won to a final total of 395.9 billion won.

The Korea Fair Trade Commission stated in its decision that the three sugar companies consistently acknowledged their actions throughout the investigation and deliberation processes, and actively cooperated by submitting materials that aided in the determination of illegality. This active cooperation was cited as the basis for the reduction. According to current fine guidelines, fines can be reduced by up to 10% for cooperation during the investigation stage, and by up to 10% for cooperation during the review stage. The commission applied the maximum reduction at both stages, resulting in a total 20% decrease for the three companies.

Regarding the base fine rate used to calculate the penalties, the Korea Fair Trade Commission classified this case as a "very serious violation," but applied the lowest rate within the relevant range (15.0%-20.0%), setting it at 15%. For aggravating factors, CJ CheilJedang received a 10% increase due to a previous violation of the Fair Trade Act. This is the minimum rate within the aggravation range stipulated in the guidelines (between 10% and less than 20%).

The commission did not specifically comment on whether the leniency (self-reporting reduction) program was applied. However, since Chairman Joo Byungki mentioned the order of self-reporting at a briefing last February, there is speculation that there may be additional reduction benefits.

Meanwhile, despite receiving such substantial fine reductions, the three sugar companies have filed administrative lawsuits challenging the Korea Fair Trade Commission's sanction decision. As a result, the final determination regarding the appropriateness of the fines and related calculations will ultimately be made in court.

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