Sejong, February 12, 2026 — The Korean Fair Trade Commission has imposed fines totaling KRW 408.3 billion (approximately $283.5 million) on three major sugar manufacturers for coordinating price increases and decreases over a period of more than four years in the country’s B2B sugar market.
The authority said CJ CheilJedang, Samyang Corp., and Daehan Sugar agreed between February 2021 and April 2025 on the timing and scale of price changes for sugar supplied to beverage and confectionery manufacturers and distributors. The KFTC also issued corrective orders prohibiting further violations and requiring the companies to report future price changes.
The KRW 408.3 billion fine marks the second-largest total penalty ever imposed by the KFTC in a cartel case and represents the highest average fine per company, at approximately KRW 136.1 billion each.
According to the decision, the companies coordinated six price increases and two price decreases during the period. When raw sugar costs rose, the firms agreed to reflect cost increases swiftly in supply prices. When raw sugar prices fell, however, they allegedly delayed reductions or limited the extent of price cuts.
The KFTC found that the companies maintained communication through meetings and contacts at various management levels, including executives and sales managers, with some gatherings reportedly taking place as frequently as nine times per month. For key customers, the supplier with the highest market share would lead negotiations, sharing progress with the others.
The authority noted that sugar production in Korea is protected by high import tariffs and significant entry barriers, making the market particularly vulnerable to coordination. It further emphasized that the companies had previously been sanctioned for similar conduct in 2007 and continued their coordinated practices even after the KFTC launched its investigation in March 2024.
The case has been referred to prosecutors, following earlier complaints involving the three corporate entities and 11 executives.
The KFTC said the decision is expected to help stabilize food prices and strengthen oversight in concentrated food markets. The authority added that it will continue monitoring price developments in the sugar sector and pursue ongoing investigations in other staple food industries, including flour, starch syrup, eggs and pork.
