LKB Pyeongsan Files Damages Suit Against Seven Flour Milling Companies on Behalf of 12 Chinese Restaurants for Flour Price Collusion

Published 29 Jul.2026 15:11(KST)

LKB Pyeongsan Law Firm (Managing Attorneys Kim Heejoon and Kim Byunghyun)'s Class Action Center filed a lawsuit on July 26 on behalf of 12 Chinese restaurants in the Seoul and Gyeonggi areas against seven domestic flour milling companies, seeking damages for alleged price collusion in the flour market.

The plaintiffs purchased between 10,470,000 won and 99,540,000 won worth of flour from wholesalers between November 2019 and October 2025. In this lawsuit, the plaintiffs are each demanding 1 million won as a partial claim, holding the seven milling companies jointly liable. The claim amounts may be raised after analyzing actual purchasing records and the fair price of flour had there been no collusion.

LKB Pyeongsan Law Firm logo. The Legal Times

The plaintiffs argue that flour is a key ingredient in major menu items at Chinese restaurants, such as Jajangmyeon, dumplings, and Tangsuyuk. They claim that the continuous increase in flour prices left them with no choice but to raise menu prices, leading to not only a decrease in sales but also concerns about customer attrition.

LKB Pyeongsan explained that while the plaintiffs felt burdened about taking legal action against large corporations, an owner of a Chinese restaurant in Seocho-dong described the lawsuit’s purpose to fellow restaurant owners and encouraged them to participate. As a result, 12 restaurants in Seoul and Gyeonggi eventually joined the legal action.

The Fair Trade Commission determined on May 20 that the seven milling companies had agreed on flour supply prices and volumes on 24 occasions over approximately six years, imposing a total of 671 billion won in fines. According to the commission's investigation, each company's flour sale prices had increased by approximately 38% to 74% compared to the outset of the collusion. Prosecutors indicted six of the milling companies and 14 associated individuals without detention on charges of violating the Fair Trade Act.

Jung Taewon (Judicial Research and Training Institute, Class 33), an attorney at LKB Pyeongsan, said, "The burden that arose from collusion by companies with oligopolistic market power has been passed on to small business owners and consumers," adding, "We hope the companies choose to settle swiftly and compensate the harmed business operators through negotiation rather than drag things out through lengthy litigation."

LKB Pyeongsan previously represented confectionery manufacturers in a lawsuit against CJ CheilJedang, Samyang Corporation, and Daehan Sugar for damages arising from price-fixing in the sugar market. The firm is currently recruiting additional participants among business operators who purchased flour, sugar, or starch and starch syrup for further lawsuits.