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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] The South Korean government has decided to suspend policy financing support for seven flour milling companies implicated in a price-fixing cartel, including CJ CheilJedang, Daehan Flour Mills, Samyang Corporation, Dong-A One, Sajo DongAOne, Korea Flour Mills, and Daesun Flour Mills.
The Ministry of Agriculture, Food and Rural Affairs announced on May 20 that these firms will be excluded from its management stabilization loan program following enforcement actions by the Fair Trade Commission.
The program provides short-term, variable-rate financing to flour producers that import wheat. By cutting off access, the government is signaling stricter consequences for companies engaged in unfair trade practices.
According to the Fair Trade Commission, the seven companies colluded between November 2019 and October 2024 to fix flour prices and control supply volumes. The regulator imposed corrective orders along with fines totaling KRW 671.0 billion.
The agriculture ministry added that it will strengthen oversight to prevent recurrence, including monthly monitoring of flour prices, as part of broader efforts to stabilize the market and protect consumers.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065620918881543
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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