[2026 Parliamentary Audit] "Order to Dissolve Korea Layer Association Was 'Violent'..." Song Miryeong: "Repeated Violations of Corporate Establishment Conditions"

Criticism at parliamentary agriculture committee audit
Korea Layer Association's price announcements deemed collusion
"Government set the narrative before imposing sanctions"

As the government moved to penalize a producer group over alleged collusion, which it blamed for this year's rise in egg prices, criticism was voiced during a parliamentary audit that the government's actions were "a violent process carried out with the conclusion already decided." The criticism was that the government had settled on a narrative that the Korea Layer Association's practice of announcing egg prices was the main cause of inflation, then rushed to impose sanctions, including a fine and revocation of its corporate establishment permit.

Criticism was also raised that the large-scale distribution of imported eggs to address shortages had worsened the damage to small domestic farms. The Ministry of Agriculture, Food and Rural Affairs, the ministry in charge, said the measures were taken because the producer group had repeatedly violated the conditions of its corporate establishment by announcing prices. It also said it would respond through legal channels to the matter, which has now become the subject of court proceedings.

A shopper looks over the egg display at a large supermarket in Seoul. Yonhap News Agency

At the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee's parliamentary audit of the Ministry of Agriculture, Food and Rural Affairs on October 7, Democratic Party of Korea lawmaker Lim Mi-ae said, "Recently, the Korea Layer Association was found by the Fair Trade Commission to have engaged in collusion and was fined, and the Ministry of Agriculture, Food and Rural Affairs moved very quickly to take a series of measures to dissolve the producer organization." She added, "From the ministry's request for an investigation by the Fair Trade Commission to the collusion ruling and the revocation of the association's corporate establishment permit, the entire process seems to have portrayed collusion as the cause of rising egg prices at the farm level."

In January 2023, when it approved the establishment of the nonprofit corporation, the Ministry of Agriculture, Food and Rural Affairs imposed a condition that the association would not determine or notify members of farm-gate egg prices. However, saying that the association continued to determine and notify members of farm-gate prices through January 21, 2026, the ministry concluded that it had violated the conditions of its corporate establishment permit and revoked the permit effective July 29, 2026.

The Fair Trade Commission also concluded that the association's practice of announcing farm-gate prices constituted collusion that restricted price competition in the market, and its subcommittee voted in May 2026 to impose a corrective order and a fine of KRW 594 million. It determined that if a particular organization sets prices in advance for future transactions and informs its members, farms will sell at similar prices, reducing price competition in the market and making it harder for consumers to benefit from fair prices.

In response, Lim said, "On June 15, 2025, shortly after the presidential election, the Ministry of Agriculture, Food and Rural Affairs sent an official letter to the Fair Trade Commission requesting an investigation into whether the Korea Layer Association's price announcements, which it said were driving up wholesale prices, violated the Fair Trade Act." She noted, "The Fair Trade Commission began an on-site investigation the next morning, and that same day, a plan to pursue an investigation into egg-price collusion was announced at a vice-ministerial meeting on prices. The entire process moved forward at a rapid pace." She added, "It appears that the government had already framed the association's longstanding price announcements as collusion and the main cause of rising prices, then pushed ahead with its actions at a rapid pace."

Minister Miryeong of Agriculture, Food and Rural Affairs answers questions from ruling and opposition lawmakers during a parliamentary audit by the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee at the National Assembly on the 7th. Yonhap News

Lim also said, "While portraying the producer organization's price-announcement function as collusion, the Ministry of Agriculture, Food and Rural Affairs tried to address supply shortages through imports and by supporting corporate entities." She added, "Ultimately, it thoroughly trampled on the domestic production base, cracked down on small farms' efforts to survive through various regulations, while opening the door to corporate operators. It also showed the paradoxical behavior of appealing to local governments to open the door to them and ease regulations."

The measures taken by the Ministry of Agriculture, Food and Rural Affairs and the Fair Trade Commission against the Korea Layer Association were halted after courts successively granted the association's requests for injunctions. Separately, a lawsuit on the merits arguing that the measures themselves were unlawful is also underway.

In response to Lim's criticism, Song Miryeong, Minister of Agriculture, Food and Rural Affairs, said, "People were saying they were at their wits' end because eggs were expensive and unavailable." She countered, "We imported eggs as a means of resolving this problem, and I think it is excessive to say that we are trampling on our farms." She added, "The Korea Layer Association repeatedly acted against the purpose for which it was established, despite several warnings, so we issued an order to dissolve it." She continued, "We will respond thoroughly through legal channels on this matter and continue working cooperatively to ensure that our farms are not harmed."

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