Prosecutors currently investigating alleged price collusion by starch and sugar (starch sugar) companies are ramping up the probe by seeking arrest warrants for key executives.
According to legal sources on the 27th, the Seoul Central District Prosecutors' Office Fair Trade Investigation Division (Director General Na Hee-seok) sought arrest warrants the previous day for three people: Daesang CEO, a person surnamed Lim; Business Division Head, a person surnamed Kim; and Sajo Group CPK CEO, a person surnamed Lee.
They are accused of pre-coordinating starch sugar sales prices and agreeing on prices during bidding by major buyers, in violation of the Fair Trade Act.
A court hearing to determine the validity of the arrest warrants is expected to take place early next week.
Starch sugar is a sugar product made by decomposing starch with acid or enzymes, and includes corn syrup, fructose, and oligosaccharides. It is mainly used as a sweetener base in processed foods such as snacks, beverages, and dairy products.
Prosecutors believe this starch sugar collusion case could be larger than past sugar collusion cases they investigated that were worth about 5 trillion won and 3 trillion won, respectively.
Earlier, prosecutors launched a compulsory investigation by conducting searches and seizures of related companies. The Korea Fair Trade Commission has also been investigating the collusion allegations of the companies since Jan.