Antitrust watchdog formally moves against flour millers over suspected price collusion
Published: 20 Feb. 2026, 14:32
Updated: 20 Feb. 2026, 15:01
Audio report: written by reporters, read by AI
![Flour is displayed at a large supermarket in Seoul on Feb. 6. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2026/02/20/ec6f7ad5-33be-426e-93b1-1b991f84c63a.jpg)
Flour is displayed at a large supermarket in Seoul on Feb. 6. [NEWS1]
The country's antitrust watchdog has formally launched sanctions procedures against major flour millers over suspicions of collusion on flour price hikes.
The secretariat of the Fair Trade Commission (FTC) said in an examiner’s report — the agency’s equivalent of a prosecutor’s indictment — sent to the companies on Friday that the agency would seek not only fines but also a “price reset order” that would roll prices back to pre-collusion levels.
The FTC said Friday that it delivered the examiner’s report on Thursday to seven flour manufacturers and sellers: Daesun Flour Mills, Daehan Flour Mills, Sajo Donga One, Samyang, Samhwa Flour Mills, CJ CheilJedang and Hantop.
The report summarizes alleged illegal conduct identified during an investigation and recommends proposed measures. A decision on legal violations as well as the final level of penalties, including fines and corrective orders are determined after deliberation by the KFTC’s full commission.
The agency investigated the flour case from October 2025 to February 2026. It formed a five-member task force, including the division chief in charge, and wrapped up the probe at an unusually fast pace.
According to the findings, the seven firms colluded for six years, from November 2019 to October 2025, on flour prices and volume allocations. The companies account for 88 percent of Korea’s business-to-business flour market. The FTC estimated collusion-related sales revenue at around 5.8 trillion won ($4 billion).
Under relevant laws, the FTC can impose fines of up to 20 percent of the sales tied to the collusion. If applied at the maximum rate, the fines could total up to 1.16 trillion won for the seven companies. The examiners said they viewed the case as a “very serious” violation and recommended corrective orders and fines, among other measures.
![Flour is displayed at a large supermarket in Seoul on Feb. 8. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/02/20/234c07ac-eddc-488a-b742-e54f67842328.jpg)
Flour is displayed at a large supermarket in Seoul on Feb. 8. [YONHAP]
The commission earlier imposed 408.3 billion won in fines on sugar refiners CJ CheilJedang, Samyang and Daehan Sugar, applying a 15 percent base penalty rate. The three companies’ collusion-related sales amounted to 3.29 trillion won.
“That collusion by flour makers and others is a cancerous presence that hinders national economic development,” President Lee Jae Myung said Thursday. “Heavy sanctions that far exceed the gains from collusion must follow to root out these nasty crimes.”
The FTC said it also included a price reset order among the proposed measures, requiring firms to lower collusion-distorted prices to normal levels. If the full commission ultimately approves such an order, it would be the first time in 20 years since the 2006 flour collusion case that the measure has been applied. In that case, flour makers cut prices by around 5 percent.
“The agency included the measure because we judged that effective restoration is needed for items closely tied to people’s livelihoods,” said Yu Seong-uk, the FTC’s director general for investigation management.
Still, whether the order is ultimately imposed remains uncertain. The prerequisites are stringent, requiring the effects of the collusion to exist at the time of the final deliberation. In many cases, once collusion is uncovered, the conduct stops and companies may voluntarily cut prices.
![Bags of flour are displayed at a discount store in downtown Seoul. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/02/20/635aa98f-80da-4797-8734-ce26a911953a.jpg)
Bags of flour are displayed at a discount store in downtown Seoul. [YONHAP]
After the respondent companies submit written opinions to exercise their right to a defense, the FTC will convene a full commission meeting and make a final decision on fines and other measures. The deadline for written submissions is eight weeks from the submission of the examiner’s report.
“The commission would move as quickly as possible to hold the meeting once legally required defense procedures are completed, noting that the case is directly linked to consumer prices,” said a FTC official. “We would actively consider ways to ensure swift and strict enforcement without exception against unfair practices that harm people’s livelihoods.”
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 AHN HYO-SEONG [[email protected]]
with the Korea JoongAng Daily
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