Another 'Flour Price Collusion' Case: Ministry of Agriculture Halts Policy Funding for 7 Milling Companies
Strengthened Oversight and Management Including Monthly Monitoring of Flour Prices
With flour milling companies having been caught colluding to raise domestic flour prices, the government has decided to exclude these companies from eligibility for policy funding support.
On May 20, the Ministry of Agriculture, Food and Rural Affairs announced that, following the Fair Trade Commission's report on the "Detection and Sanctioning of Collusion Among Seven Milling Companies in Flour," companies involved in collusion will be excluded from government policy funding support. The ministry also stated it plans to strengthen management and oversight to prevent a recurrence of unfair practices, including monthly monitoring of flour prices.
The companies caught by the Fair Trade Commission this time are Daehan Flour Mills, CJ CheilJedang, Sajo DongA One, Samyang Corporation, Daesun Flour Mills, Samhwa Flour Mills, and Hantop—seven businesses engaged in the manufacturing and sale of flour.
According to the Fair Trade Commission, these companies engaged in collusion from November 2019 to October 2025, a period of about six years, by agreeing on and implementing the supply prices and supply volumes of flour sold to noodle manufacturers (ramen, noodles, etc.) and confectionery companies. In response, the Fair Trade Commission imposed corrective orders, including an order for independent price determination, and levied a total fine of 671,045,000,000 won.
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These milling companies had previously been sanctioned by the Fair Trade Commission for collusion in 2006, yet committed collusion again in this case. Notably, during the government’s price stabilization project period (June 2022 to February 2023), when subsidies funded by taxpayers were provided to stabilize prices, the companies continued their collusive actions even while receiving such subsidies. The Fair Trade Commission judged the law violations to be severe and imposed the largest fine in the history of collusion cases.
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