South Korea's Fair Trade Commission imposed fines totaling 747.576 billion won ($747.6 million) on four starch syrup manufacturers on May 7 for operating a price-fixing cartel over 7 years and 5 months. Daesang, Sajo CPK, Samyang, and CJ CheilJedang coordinated prices in what became the largest antitrust fine in KFTC history. The penalties exceed the 2025 operating profits of three of the four companies. The commission detected the collusion after the firms maintained coordinated pricing across the domestic starch and starch syrup market. KFTC Vice Chairman Nam Dong-il stated the fine reflected accumulated sales over the extended cartel period rather than single-year profit figures.
KFTC Imposes Record 747.6 Billion Won Fine on Four Starch Syrup Makers
The Korea Fair Trade Commission announced on May 7 corrective orders and fines totaling 747.576 billion won against Daesang, Sajo CPK, Samyang, and CJ CheilJedang for price-fixing in the starch and starch syrup manufacturing sector. Daesang received a fine of 234.1 billion won, Sajo CPK 200.1 billion won, Samyang 210.3 billion won, and CJ CheilJedang 103 billion won. The fine represents the largest antitrust penalty the KFTC has imposed in a cartel case.
The penalties exceed the 2025 operating profits of the top three starch producers excluding CJ CheilJedang. Daesang reported 150.5 billion won in operating profit on a standalone basis in 2025, Sajo CPK reported 36.1 billion won, and Samyang reported 65.7 billion won. KFTC Vice Chairman Nam Dong-il stated at a briefing that the cartel operated for 7 years and 5 months, leading to accumulated sales over the period. He explained that the fine calculation prioritized profits obtained through collusion and related sales over single-year operating profit benchmarks, and that the commission followed legal standards regarding the companies' ability to pay.
Fines Exceed Companies' Contingent Liability Provisions
Several companies had set aside contingent liabilities in their 2025 financial statements anticipating the fines, but the final amounts exceeded their provisions. Sajo CPK recorded 84.9 billion won in current other provisions in its 2025 audit report, recognizing expected KFTC fines related to starch syrup collusion. The actual fine imposed was 115.2 billion won higher than the provision.
Samyang recorded 281.3 billion won in current other provisions on a standalone basis. When combined with a 130.2 billion won fine imposed in a separate sugar price-fixing case, the total penalties exceed the provisioned amount. CJ CheilJedang received a relatively lower fine of approximately 103 billion won due to its smaller market share in starch syrup, but the company's 2025 provisions were comparable to fines imposed in separate sugar and flour collusion cases, creating additional financial burden.
The KFTC initiated review procedures for bidding collusion involving all four companies and by-product price-fixing by the top three producers excluding CJ CheilJedang. Additional fines remain under consideration.
Financial Impact Pending Final Fine Confirmation
The final fine amounts have not been confirmed, requiring further time to assess the full financial burden. The four starch producers appear to accept the KFTC's findings, but the current penalties do not yet reflect potential leniency program benefits or administrative litigation outcomes.
Korea Ratings analyzed the financial impact of sugar collusion fines on CJ CheilJedang in February, determining that the burden would be limited as the penalties constituted one-time costs. The agency noted that voluntary price reductions and KFTC price redetermination orders established a downward pricing trend across ingredient foods. Korea Ratings stated it would monitor the final fine amount following appeals and administrative litigation, as well as pricing control in the food segment.
Sajo CPK and Samyang issued apologies following the KFTC review and pledged to strengthen internal management procedures. Sajo CPK stated it accepted the KFTC decision and apologized to consumers for causing concern. The company conducted a pledge ceremony and fair trade education for all employees immediately after the announcement to implement recurrence prevention measures. Samyang apologized to customers and consumers and stated it was reviewing internal standards and decision-making procedures for pricing policies and sales activities while strengthening related management systems. Daesang and CJ CheilJedang provided no separate statements.
FAQ
What did the Korea Fair Trade Commission announce on May 7?
The Korea Fair Trade Commission announced corrective orders and fines totaling 747.576 billion won against four starch and starch syrup manufacturers — Daesang, Sajo CPK, Samyang, and CJ CheilJedang — for operating a price-fixing cartel over 7 years and 5 months. The fine represents the largest antitrust penalty the KFTC has imposed in a cartel case.
How do the fines compare to the companies' 2025 operating profits?
The fines exceed the 2025 operating profits of three of the four companies. Daesang's fine of 234.1 billion won exceeds its 150.5 billion won operating profit, Sajo CPK's fine of 200.1 billion won exceeds its 36.1 billion won operating profit, and Samyang's fine of 210.3 billion won exceeds its 65.7 billion won operating profit, all on a standalone basis.
