In the trial over price-fixing in starch and saccharides (starch sugar) valued in the 10 trillion won range, the scope of collusion liability for retired employees and the statute of limitations have emerged as key issues.
Some defendants partially acknowledged collusion while employed but argued they did not take part in specific price decisions. They especially argued that, because they left the collusive arrangement after retirement, allegations covering the period after retirement cannot be recognized.
On the 25th, Judge Lee Ho-seon of the Seoul Central District Court's Criminal Division 3 held the first preparatory hearing for three corporations, including 대상, Sajo CPK, and CJ CheilJedang(097950), as well as former and current executives and employees and the head of the starch sugar association, who were indicted on charges of violating the Monopoly Regulation and Fair Trade Act.
◇"Did not take part in price decisions while employed… statute of limitations expired after retirement"
A defense attorney for one defendant partially acknowledged the charges related to price-fixing during the employment period but said, "It amounted to passive acquiescence, and they did not know the specifics of how prices were agreed."
They then raised the statute of limitations after retirement as the most important issue. The attorney argued that, because the defendant left the collusive arrangement upon retirement, they cannot be held liable for conduct after that point.
A defense attorney for a retiree from Sajo CPK also said, "As far as we can tell, without exception all defense attorneys deny the charges for the period after resignation." The attorney added, "The prosecution's indictment almost without exception includes the period after resignation," and requested that prosecutors specifically explain the legal basis for judging that the collusive relationship continued after retirement.
The court said it would decide after examining evidence rather than ruling immediately on the issue. Judge Lee said, "We can hold witness examinations and make a final decision then."
◇Prosecutors to call 10–12 witnesses… "Sequential questioning from working-level staff to executives"
Prosecutors plan to call about 10–12 witnesses to prove the parts for which defendants did not consent to the use of evidence. They will question witnesses company by company, starting with working-level staff and moving up to superiors and executives.
Prosecutors said that direct examination of a single witness could take about two to three hours.
Defendants' positions on the evidence differed by company. Daesang did not agree to some evidence related to one CEO and decided to focus on confirming Daesang-related matters through upcoming witness examinations. CJ CheilJedang agreed to all evidence submitted by prosecutors and asked to have its defense separated.
Sajo CPK also expressed an intention to separate its defense. However, some defendants from Sajo CPK said they would take part in the upcoming witness examinations and ask necessary questions.
Before full-fledged witness examinations, the defense also asked for an opportunity to present their position on the indictment via a presentation (PT). One attorney said, "If we first explain the problems with the indictment and our basic denial, it will help understand why the subsequent witness examinations proceed the way they do."
The court decided to schedule specific witness examinations after holding the defense PT at the next hearing.
◇10 trillion won collusion allegations over eight years… Samyang Corporation not indicted
Prosecutors believe four companies—Daesang, Samyang Corporation(145990), Sajo CPK, and CJ CheilJedang—agreed in advance on the timing and magnitude of price increases for starch sugar products from July 2017 to Oct. 2025. The collusion scale identified by prosecutors amounts to about 10.152 trillion won. In April, prosecutors sent three corporations—Daesang, Sajo CPK, and CJ CheilJedang—and a total of 25 people, including former and current executives and employees and the head of the starch sugar association, to trial. Samyang Corporation, which was investigated as a co-conspirator, was excluded from indictment.
The trial is expected to focus not only on whether collusion occurred but also on what roles each defendant actually played in the collusion process, whether the collusive relationship can be seen as continuing after retirement, and how the statute of limitations applies accordingly.
The next preparatory hearing will be held at 10 a.m. on Oct. 6.