Prosecutors Indict Executive in '10 Trillion Won Starch and Sugar Price-Fixing' Case

by Jang Hyowon

Published 16 Apr.2026 18:48(KST)

Yonhap News

In connection with large-scale price-fixing allegations surrounding starch and sugar prices, prosecutors have indicted an executive from Daesang, placing him under detention pending trial.

According to the legal community on April 16, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (headed by Prosecutor Na Heeseok) indicted Kim, head of the business division at Daesang, on charges of violating the Fair Trade Act.

Kim, the former division head, is accused of colluding in advance with executives from rival companies such as CJ CheilJedang, Samyang Corp., and Sajo CPK to fix the sale prices of starch sugars and to coordinate prices during bidding processes for major buyers.

Prosecutors believe these companies engaged in price-fixing activities for over eight years, with the total value exceeding 10 trillion won.

The investigation gained momentum starting March 23, when prosecutors conducted searches and seizures at four starch sugar companies. After exercising the right to request accusations from the Fair Trade Commission twice, prosecutors requested arrest warrants on March 31 for three individuals: Kim, the division head at Daesang; Lim, the CEO of Daesang; and Lee, the CEO of Sajo CPK.

The court issued an arrest warrant only for Kim, while Lim and Lee were denied warrants due to insufficient evidence regarding their involvement in price-fixing and the absence of concerns about destruction of evidence or flight risk, respectively.

Subsequently, on April 10, prosecutors again sought an arrest warrant for Lim on the same charges, but the court rejected the request, stating that there was insufficient evidence to support the allegations.

Starch sugar refers to a product group including corn syrup, fructose, and oligosaccharides processed from starch, which are widely used as ingredients in the production of snacks, beverages, and dairy products.

Meanwhile, prosecutors have recently focused their investigative efforts on price-fixing cases involving essential goods closely related to people's daily lives. As of February this year, 52 executives and employees from companies involved in price-fixing activities in the flour, sugar, and electricity sectors-with a combined value of approximately 10 trillion won-have been indicted.