Flour Byproduct Price-Fixing Allegations Span 8 Years and 6 Months... KFTC Begins Deliberations

The Korea Fair Trade Commission (KFTC) has begun deliberations on allegations that companies colluded on prices in the flour byproducts market for about eight years and six months. The sales affected by the alleged collusion were found to total KRW 1.4 trillion. If the KFTC finds that price fixing took place, it plans to consider not only corrective orders and fines but also filing complaints against the companies and their executives and employees.

Fair Trade Commission Chair Joo Byeonggi delivers opening remarks at a ruling party-government meeting on legislative measures to eradicate repeated collusion, held at the National Assembly on September 28, 2026. Photo by Yoon Dongju

The KFTC’s Secretariat said on October 14 that it had submitted to the commission a review report on the price-fixing case involving six flour byproduct manufacturers and sellers—Daehan Flour Mills, Sajo DongA One, Sajo Daerim, Samyang Corporation, CJ CheilJedang, and Hantop—on October 13 and sent copies to each company.

The investigators concluded that the companies colluded each month on the sale prices of flour byproducts from April 2017 to October 2025, a period of about eight years and six months. They also said the conduct constituted a serious violation of the Fair Trade Act’s prohibition on price fixing.

Flour byproducts are non-edible materials generated when wheat is processed into flour for human consumption. Major examples include wheat bran and off-grade flour. They are mainly used as ingredients in compound feed for livestock such as cattle, pigs, and chickens. Wheat bran provides fiber and bulk to feed, while off-grade flour, which has a high starch and gluten content, is used to bind feed ingredients together.

The proportions of feed ingredients can be adjusted according to supply and demand, but the prices of major ingredients affect feed production costs. With the KFTC estimating that the relevant sales amounted to KRW 1.4 trillion, whether collusion occurred and the level of sanctions are expected to be key issues in the commission’s deliberations.

The investigators recommended corrective measures, fines, and complaints against the six companies and their executives and employees. However, a review report sets out the investigators’ findings and recommended measures; it does not bind the commission’s final decision. Whether each company violated the law and the specific level of sanctions will be determined after deliberations by an independent commission.

The companies may submit written opinions within eight weeks of receiving the review report and are also entitled to defend themselves, including by requesting access to and copies of the evidence. The KFTC plans to convene the commission and make a final decision once the relevant procedures are complete.

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