It was confirmed on the 19th that the Korea Fair Trade Commission sent a review report applying alleged violations of the Fair Trade Act to seven flour manufacturers and sellers, including CJ CheilJedang and Daehan Flour Mills. A review report is a document in which the Korea Fair Trade Commission (FTC) sets out the corporations' alleged violations and the resulting penalty surcharge, and corresponds to an indictment by prosecutors.
The Korea Fair Trade Commission (FTC) applied alleged violations of Article 40 of the Fair Trade Act to the seven flour manufacturers and sellers. Under this provision, business operators must not collude on price, quantity, transaction terms, and the like. Prosecutors had already launched an investigation into the same case. On the 2nd of this month, prosecutors said that flour manufacturers and sellers, including Daehan Flour Mills, Sajo Dongaone, Samyang Corporation, Daeseon Flour Mills, Samhwa Flour Mills, and Hantop, agreed on whether, how much, and when to change flour prices from 2020 to 2025. They estimated the size of the flour cartel at 5.9913 trillion won. Prosecutors brought six corporations and 14 executives and employees to trial.
After sending the review report, the Korea Fair Trade Commission (FTC) convenes a plenary meeting to decide the final level of sanctions. The plenary meeting on this case is expected to be held this month. Ju Biung-ghi, chair of the Korea Fair Trade Commission, recently said, "It will be brought to the plenary meeting on the flour cartel in February."
Meanwhile, in the immediately preceding case, the sugar cartel involving CJ CheilJedang, Samyang Corporation, and TS Corporation, the Korea Fair Trade Commission (FTC) imposed a penalty surcharge of 408.3 billion won. This is the second-largest amount on record after the 6 LPG suppliers in 2010 (668.9 billion won). There is also speculation that a large penalty surcharge could be imposed in the current flour cartel case.