A first-trial verdict for current and former executives and employees of CJ CheilJedang and Samyang Corporation, accused of colluding on sugar prices worth 3 trillion won, will be handed down today (the 23rd). With President Lee Jae-myung saying, "There must be a perception that if you are caught taking unjust gains, you will be ruined," attention is focused on whether key suspects will receive prison sentences.
Ryu Ji-mi, a single-judge panel at Criminal Division 5 of the Seoul Central District Court, will hold a sentencing hearing at 10 a.m. for 11 current and former executives and employees, including former CJ CheilJedang Korea Foods head Kim Sang-ik and former Samyang Corporation CEO Choi Nak-hyun, who were indicted on charges of violating the Monopoly Regulation and Fair Trade Act.
The key issue in court today is whether prison sentences will be handed down to the main suspects in the collusion case.
At the sentencing hearing on the 9th, prosecutors sought three years in prison and a fine of 100 million won for the former CJ CheilJedang Korea Foods head Kim, and two years and six months in prison and a 70 million won fine for former Samyang Corporation CEO Choi. Other executives and employees facing the same charges also faced requests for prison terms and fines, respectively.
Prosecutors say strict punishment is needed for individuals who took part in the collusion. Prosecutors said, "This collusion case is not an individual deviation but an organized crime that involved even corporate representatives," adding, "There is a need to sound a warning to a market that takes collusion lightly, and commensurate punishment is needed for the defendants to eradicate collusion."
The president also emphasized the need for severe punishment in collusion cases. At a recent Cabinet meeting, the president said, "We must strengthen sanctions on economic crimes to the extent that there is a perception that if you are caught taking unjust gains, you will be 'ruined.'"
According to prosecutors, CJ CheilJedang and Samyang Corporation, among others, are accused of colluding on sugar prices totaling 3.2175 trillion won from Feb. 2021 to Apr. 2025. The Korea Fair Trade Commission also confirmed the sugar price collusion by these corporations in Feb. and decided to impose a total penalty surcharge of 408.3 billion won (tentative).
Meanwhile, signs of a wave of lawsuits are emerging against the corporations involved in sugar price collusion. On the 21st, A, the head of a well-known confectionery company in a provincial region, filed a complaint with the Seoul Central District Court seeking 20 million won in damages against CJ CheilJedang, Samyang Corporation, and TS Corporation. The Korea Bakery Association, which has 4,000 member companies nationwide, is also reviewing a damages suit against sugar and flour milling companies.