A well-known confectionery company in a provincial area filed a lawsuit, saying it suffered losses from collusion on sugar prices by CJ CheilJedang, Samyang Corporation and TS Corporation.
According to legal sources, on the 22nd, the head of the confectionery company, identified as A, filed a complaint with the Seoul Central District Court the previous day seeking 20 million won in damages from the three companies.
A said the three companies purchased about 200 million won worth of sugar through an intermediary wholesaler during the period they colluded on sugar prices. But A argues that, because of the corporations' collusion, they suffered losses, so the companies must pay 20 million won, equivalent to 10% of the purchase amount, plus delayed damages.
According to law firm LKB Pyeongsan, which represents A, this is the first damages suit filed after recent announcements by the Korea Fair Trade Commission and prosecutors on the sugar price-fixing case.
CJ CheilJedang, Samyang Corporation and TS Corporation, which have been sued, are corporations that account for 90% of the domestic sugar market.
The Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office (Director General Na Hee-seok) confirmed that the corporations colluded on sugar prices totaling 3.2175 trillion won from Feb. 2021 to Apr. 2025, and in Nov. last year indicted former and current executives and the corporate entities. At the sentencing hearing on the 9th, prosecutors sought prison terms for Kim Sang-ik, former head of Korea Foods at CJ CheilJedang, and Choi Nak-hyun, former head of Samyang Corporation, among others.
The Korea Fair Trade Commission also confirmed in Feb. that the corporations colluded on sugar prices and decided to impose a total penalty surcharge of 408.3 billion won (provisional).
LKB Pyeongsan said, "Corporations with oligopolistic market positions maximized profits through collusion, shifting the burden onto small business owners and consumers," and added, "Their responsibility is by no means light."