South Korea's Fair Trade Commission (KFTC) initiated enforcement proceedings against four starch syrup manufacturers—Daesang, Samyang Corporation, Sajo CPK, and CJ CheilJedang—for bid-rigging in procurement tenders, the commission announced on the 7th. The companies colluded from around September 2016 to around June 2025 on contract allocation, bid prices, and quantities in tenders issued by seven major buyers, affecting 940 billion won in related sales. Three of the companies—Daesang, Sajo CPK, and Samyang—also fixed prices of starch syrup by-products from around August 2017 to around October 2025, impacting 1.55 trillion won in related sales. The collusion enabled the companies to predetermine winning bidders, bid rankings, and contract volumes across multiple procurement cycles. The KFTC can impose fines of up to 20% of affected sales under competition law provisions.
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Korea Fair Trade Commission office [Source: Yonhap News file photo]
Four Manufacturers Colluded on Starch Syrup Procurement Tenders from 2016 to 2025
Daesang, Sajo CPK, Samyang Corporation, and CJ CheilJedang participated in starch and starch syrup procurement tenders issued by seven major end-users from around September 2016 to around June 2025. The companies agreed in advance on winning bidders, bid rankings, bid prices, and bid quantities, then allocated contract volumes among themselves. The KFTC determined that this collusion affected 940 billion won in related sales.
Three Companies Fixed Prices of Starch Syrup By-Products Over Eight-Year Period
Daesang, Sajo CPK, and Samyang colluded monthly on sales prices of starch syrup by-products from around August 2017 to around October 2025. The KFTC stated that this price-fixing affected 1.55 trillion won in related sales. Starch syrup by-products are substances generated during the processing of raw materials to produce starch and starch syrup.
Starch Syrup and By-Products Serve Food and Industrial Applications
Starch syrup refers to starch produced by grinding corn (in powder form) and sugars produced by hydrolyzing starch (such as corn syrup). The products are categorized by use into food-grade (raw materials for noodles and other foods) and industrial-grade (adhesive and coating applications in papermaking, steelmaking, and other industries). Representative by-products include corn gluten feed, gluten, and germ. Corn gluten feed and gluten are primarily used as livestock feed, while germ is used as an edible oil ingredient.
KFTC Examiners Recommended Corrective Measures and Fines Up to 20% of Sales
KFTC examiners submitted audit reports to the commission on the 7th, concluding that the four manufacturers' conduct constitutes serious violations of competition law. The examiners recommended corrective measures and fines. The commission can impose fines of up to 20% of affected sales under relevant laws. The four companies can submit written opinions, request access to evidence, and exercise other defense rights within eight weeks of receiving the audit reports. The KFTC stated it will convene a commission meeting to issue a final decision promptly after the defense rights period concludes.
FAQ
What did the Korea Fair Trade Commission announce on the 7th regarding starch syrup manufacturers?
The KFTC announced enforcement proceedings against Daesang, Samyang Corporation, Sajo CPK, and CJ CheilJedang for bid-rigging in starch syrup procurement tenders from around September 2016 to around June 2025, affecting 940 billion won in related sales. Three of the companies also fixed prices of starch syrup by-products from around August 2017 to around October 2025, impacting 1.55 trillion won in related sales.
How did the four starch syrup manufacturers collude on procurement tenders?
The companies agreed in advance on winning bidders, bid rankings, bid prices, and bid quantities for tenders issued by seven major buyers. They then allocated contract volumes among themselves based on these pre-arranged terms.
What penalties can the KFTC impose on the starch syrup manufacturers?
The KFTC can impose fines of up to 20% of affected sales under competition law provisions. KFTC examiners recommended corrective measures and fines in audit reports submitted on the 7th. The commission will issue a final decision after the companies exercise defense rights within an eight-week period.
