Seven South Korean flour-milling companies were fined a record 6.71 trillion won for colluding on pricing and supply [1].
This enforcement action targets a systemic manipulation of a critical food staple. Because the involved firms control about 90% of the domestic flour market [1], their coordinated pricing directly impacted the cost of basic goods for millions of consumers.
The Korea Fair Trade Commission found that the companies, including CJ제일제당, 대한제분, and 사조동아원, engaged in price-fixing for six years [1]. This period of collusion stretched from November 2019 to October 2025 [1]. According to the commission, the firms coordinated their activities 24 times to inflate profits [1].
The companies manipulated several key variables to maintain high prices. They coordinated flour supply prices and established specific ranges for price increases and decreases [1]. Additionally, the firms managed the allocation orders for bakery and noodle manufacturers to prevent competitive bidding [1].
The total volume of the collusion is estimated at 6 trillion won [1]. The record fine of 6.71 trillion won is intended to reset flour prices and deter future anti-competitive behavior in the agricultural sector [1].
Officials from the commission said the scale of the collusion was unprecedented. The regulatory body ordered the companies to immediately reset their pricing structures to reflect fair market competition [1].
“Seven South Korean flour-milling companies were fined a record 6.71 trillion won”
The scale of this penalty reflects an aggressive move by the Korea Fair Trade Commission to combat inflation in the food supply chain. By targeting companies that control nearly the entire market, the government is signaling that market dominance will not shield firms from severe penalties if they stifle competition to inflate profits.
