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FTC slaps $277M fine on top 3 sugar makers for oligopoly, collusion

Published: 12 Feb. 2026, 17:35 Updated: 12 Feb. 2026, 19:55

Fair Trade Commission Chairman Ju Biung-ghi speaks during a press conference at the government complex in Sejong on Feb. 12. [NEWS1]

Three companies that dominated Korea’s sugar market were slapped with fines totaling more than 400 billion won ($277 million) for allegedly colluding on prices for about four years and reaping illicit gains. This is the largest fine ever imposed per company in a price-fixing case.

The Fair Trade Commission (FTC) will impose corrective orders and fines totaling 408.3 billion won on CJ CheilJedang, Samyang and Daehan Sugar for violating the Monopoly Regulation and Fair Trade Act, the FTC said Thursday.

The fines amount to 150.69 billion won for CJ CheilJedang, 130.25 billion won for Samyang and 127.37 billion won for Daehan Sugar.

The three companies agreed on the timing and scale of changes to sugar prices on eight occasions from February 2021 to April last year. Prices were raised six times and lowered twice during this period. The FTC determined that this conduct constituted an unfair joint act prohibited under the Fair Trade Act.

When raw material costs rose, the companies agreed in advance on when and by how much to raise supply prices. They did so to quickly reflect higher costs in sugar prices.

When international raw sugar prices fell, they reduced sugar prices by less than the drop in raw material costs. They also delayed the timing of price cuts.

Fair Trade Commission Chairman Ju Biung-ghi is seen before a press conference at the government complex in Sejong on Feb. 12. [NEWS1]

The companies coordinated prices through meetings and contact among executives at various levels, according to the FTC’s investigation. These included representative-level officials, division heads, sales executives and sales team leaders. The company with a higher market share negotiated with specific clients and shared the results with the others.

Related sales generated through collusion totaled 3.29 trillion won, the FTC said. The applied surcharge rate was 15 percent.

This case is the second-largest single collusion case in terms of total fines. The largest was a 668.9 billion won fine imposed on six liquefied petroleum gas suppliers in June 2010. However, the average fine per company in this case stands at 136.1 billion won. That is the highest ever imposed per company in a collusion case.

“We believe the fines imposed exceed the unjust gains the companies obtained through collusion,” said FTC Chairman Ju Biung-ghi.

Bags of sugar are seen on display at a large supermarket in Seoul on Feb. 12. [YONHAP]

The FTC began its investigation into collusion of sugar companies in March 2024. The three companies reportedly maintained their collusive stance for more than a year after becoming aware of the probe. They are also said to have shared information about the investigation and discussed joint responses.

The three companies were previously caught colluding in 2007. Some observers say this points to structural problems. The sugar industry has effectively maintained an oligopoly for decades. Based on domestic sales volume in 2024, the combined market share of the three companies stands at about 89 percent.

“Using high entry barriers to generate stable profits and then engaging in collusion to maximize gains deserves strong criticism,” Ju said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JANG WON-SEOK [[email protected]]