CJ CheilJedang issued an official apology and announced measures to prevent a recurrence immediately after the Korea Fair Trade Commission's decision on sugar price-fixing.
On the 12th, CJ CheilJedang said, "We deeply apologize for causing concern to customers and consumers," and added, "We recognize the gravity of this matter and will promptly implement measures to prevent a recurrence so that this does not happen again."
First, it decided to withdraw from the Korea Sugar Association, an interest group of sugar manufacturers. The sugar association has handled external communications for member companies and supported purchases of materials and supplies, but it has faced criticism for potentially serving as a channel through which sugar corporations could make contact with rivals.
Along with leaving the association, CJ CheilJedang will impose a blanket ban on contacts between its executives and employees and other sugar corporations, and strengthen internal penalties, including applying a "one-strike-out" rule for violations.
It will also overhaul how prices are set. The company will introduce a transparent "list price decision system" that discloses information such as exchange rates and materials and supplies prices and links prices to costs. The aim is to set prices based on objective criteria without one-on-one talks between corporations or reading the room.
In addition, it will reinforce the role and functions of the compliance management committee and bolster internal controls by expanding participation by outside members. It will also pursue a voluntary reporting system to block contacts between employees and competitors.
CJ CheilJedang said, "Going forward, we will continue to put public trust first and fulfill our responsibility to establish a transparent and fair competitive order," adding, "We once again sincerely apologize."