Food Price-Fixing Allegations Mark FTC Unit's "First Case"; On-Site Inspections at Daesang, Ottogi, and CJ CheilJedang

On-site inspections at Daesang, Ottogi, and CJ CheilJedang
Alleged price fixing in key processed food categories

The Intensive Investigation Planning Unit, revived 21 years after the Fair Trade Commission's former Investigation Bureau from which it originated was disbanded, has launched on-site inspections targeting major food companies whose products directly affect the cost of everyday meals for ordinary households.

According to the government and industry sources on October 15, the Korea Fair Trade Commission's Intensive Investigation Planning Unit dispatched a large team of investigators to the headquarters of leading domestic food companies, including Daesang Corporation, Ottogi, and CJ CheilJedang, and began surprise on-site inspections scheduled to last one week. The investigation is reportedly focused on allegations of price fixing involving six key processed food categories: kimchi, tofu, edible oils and fats, holiday gift sets, instant rice, and fermented sauces. The companies are reported to have coordinated improperly over several years since 2018, either raising product prices in succession or maintaining them at high levels.

In addition to price fixing, resale price maintenance is also a key focus of the investigation. The Korea Fair Trade Commission is closely examining whether, since 2020, the food manufacturers have forced distribution channels such as major retailers and dealerships not to discount their products below specified prices, and whether they imposed penalties, such as cutting off supplies, on those that violated the restrictions. Last month, the Commission also conducted preliminary on-site inspections of these companies to determine whether they had colluded in setting prices for fermented sauces such as gochujang and doenjang.

The investigation into the food industry is the first case taken up by the Intensive Investigation Planning Unit, which was newly launched on October 1, 2026. The Fair Trade Commission's Investigation Bureau, which had built a strong reputation by cracking down on serious misconduct by major conglomerates but was disbanded amid controversy over external pressure, has effectively been relaunched under a new name after 21 years. Fair Trade Commission Chair Joo Byung-ki recently told a National Assembly audit session of the Political Affairs Committee that the Commission would "step up monitoring for collusion in areas directly related to the financial burden on ordinary households, including energy, food ingredients, education, and housing."

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