South Korean authorities found seven flour-milling companies colluded to manipulate supply prices and quantities over a six-year period [1], [2].
The scale of the coordination suggests a systemic failure in market competition for a staple food product. Because these companies control roughly 90% of national flour sales [1], the price hikes directly impacted the cost of living for millions of consumers.
The collusion occurred from November 2019 through October 2025 [1], [2]. During this window, the companies engaged in 24 coordinated actions to raise prices and manipulate market shares [1], [2]. This activity continued even while the government provided a 471 billion-won subsidy intended to maintain price stability [1], [2].
The financial impact on the public was significant. Between December 2019 and September 2022, flour prices increased by 38% to 74%, depending on the company [1]. The seven involved firms include CJ제일제당, 사조동아원, and 대한제분 [1], [2].
Investigators estimate the total gain from this collusion at 6 trillion won [1]. The companies effectively neutralized competition to maximize profits, an action that occurred despite the state's efforts to offset costs through subsidies [1], [2].
“Seven companies controlling 90% of the market allegedly manipulated prices and supply.”
This case highlights a severe breach of trust between the private sector and the state, as the companies inflated prices while simultaneously accepting government subsidies designed to prevent such inflation. The 6 trillion-won gain underscores the high profitability of oligopolies in essential commodity markets and may lead to stricter regulatory oversight of the South Korean food supply chain.
