Korea Fair Trade Watchdog Opens Food Cartel Probe Into Major Producers

South Korea’s antitrust regulator has opened an investigation into suspected collusion among major food manufacturers, making the case the first undertaken by a newly established intensive investigation unit focused on serious unfair trade practices.

The Fair Trade Commission sent investigators to Daesang, Ottogi and CJ CheilJedang on Wednesday for on-site inspections, according to industry accounts reported by Yonhap News Agency. The regulator is understood to have detected indications that the companies may have coordinated their conduct over several years across multiple processed-food categories.

Products cited in connection with the inquiry include kimchi, tofu, cooking oils and fats, gift sets, instant rice and fermented sauces. The investigation remains at an early stage, and the reported suspicions do not by themselves establish that the companies violated competition law. The commission will need to examine records gathered during the inspections before deciding whether enforcement action is warranted.

The case is notable not only because it involves some of South Korea’s largest food producers, but also because it marks the first assignment for the commission’s newly formed intensive investigation planning team. The unit began operating earlier this month, reviving a centralized investigative function that had been abolished 21 years ago. Its predecessor was widely known in the business community for aggressively pursuing major corporate cases.

By choosing an alleged food-sector cartel as its opening investigation, the commission is signaling that conduct affecting everyday household expenses will be a central enforcement priority. Food prices have a direct and broad effect on consumers, and coordinated conduct among major suppliers could weaken price competition across frequently purchased goods.

Fair Trade Commission Chair Ju Byung-kee outlined that emphasis in September, saying the new team would use its investigative capacity to conduct swift and concentrated reviews of unfair practices in fields closely connected to people’s daily lives.

The inquiry now places the three companies’ conduct across several product markets under regulatory scrutiny. The scope described so far covers suspected activity over a period of years, but the commission has not announced findings, penalties or a timetable for completing the investigation. Any further action will depend on the evidence and the regulator’s assessment of whether prohibited coordination occurred.