"Egg Prices Are Strange" Proven True... Collusive Margin Hike of 46% Without Basis Leads to 594 Million Won Fine

Fair Trade Commission Imposes 594 Million Won Fine on Korea Poultry Association for Collusion
Association's 'Reference Price' Effectively Controls Actual Transaction Prices
Production Costs Unchanged, but Margins Soar 46% Over Two Years

On May 14, the Korea Fair Trade Commission decided to impose a corrective order and a fine of 594 million won on the Korea Egg Producers Association, a corporation that has artificially determined and notified the farm gate prices of eggs, a staple food for the Korean public. The Fair Trade Commission stated that this measure reflects the strong resolve of the new administration to strictly punish cartel activities by business associations that undermine price stability for everyday consumer goods.

Eggs are displayed at a large supermarket in Seoul. Photo by Yonhap News Agency

Production Costs Remain Flat, but 'Reference Price' Increased by 9.4%... "Collusion to Secure Margins"

According to the Fair Trade Commission, the Egg Producers Association has frequently set and notified reference prices for eggs by weight category through regional special committees from January 2023 to January 2026. This association is an organization consisting of 580 farms that produce and sell eggs.

A large supermarket in Seoul. Yonhap News.

The investigation found that the reference prices notified by the association had a decisive impact on the actual market transaction prices. Notably, during the period of violation from 2023 to 2025, the association raised the reference price by 9.4%. Although the production costs for raw eggs, such as feed expenses, remained stable during the same period, the gap (margin) between the reference price and production cost expanded by about 46%, increasing from 781 won in 2023 to 1,140 won in 2025.

Moon Jaeho, Director General of the Cartel Investigation Bureau, explained, "The association did not provide information based on market research but instead independently determined and announced its desired prices without any clear basis," adding, "This is a clear violation of the law as it restricted free price competition among member businesses and led to higher consumer prices."

Previously 'No Charges,' Now 'Fines'... Changing Standards at the Fair Trade Commission

This sanction stands out in contrast to previous cases, where the Fair Trade Commission had issued warnings or found no charges for the same actions. In 2019, the Fair Trade Commission regarded the association's price announcements as mainly providing information by surveying and publishing past transaction prices.

However, the assessment has changed this time. A Fair Trade Commission official explained, "In the past, distributors had a stronger bargaining position, but recently, as the negotiating power of egg producers has increased, the reference prices announced by the association have had a more direct influence on actual transaction prices." In addition, the fact that the association set a separate 'future reference price,' even though the Livestock Products Quality Evaluation Institute was already surveying and announcing actual transaction prices, was cited as evidence of intentional collusion.

The Fair Trade Commission plans to strengthen its monitoring of collusion in sectors closely related to daily life and will continue to monitor for direct collusion among egg producers as well.

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