Sejong, February 20, 2026 — The Korea Fair Trade Commission (KFTC) has sent an examiner’s report to seven flour manufacturers and distributors over alleged price fixing and output allocation in the domestic flour market, formally initiating deliberation proceedings.
The KFTC Secretariat said on February 19 that it had completed its investigation into alleged collusion in the business-to-business (B2B) flour sales market and submitted the report to the Commission on the same day. The report sets out the facts identified during the investigation, the alleged violations, and proposed corrective measures. The Commission noted that the report does not bind its final decision.
The companies concerned are Daehan Flour Mills, Daesun Flour Mills, Sajo DongAOne, Samyang Corporation, Samhwa Flour Mills, CJ CheilJedang, and Hantop.
According to the examiner, the companies — which together accounted for approximately 88% of the domestic B2B flour sales market in 2024 — repeatedly agreed on flour sales prices and allocated sales volumes between November 2019 and October 2025. The investigation, conducted between October 2025 and February 2026, estimated that the alleged conduct affected approximately KRW 5.8 trillion (approximately $4 billion) in related sales.
The B2B market includes direct transactions with large buyers such as instant noodle, bakery, and confectionery manufacturers, as well as indirect sales through distributors to smaller customers.
The examiner concluded that the conduct constituted serious violations of Article 40(1)(1) of the Monopoly Regulation and Fair Trade Act (price fixing) and Article 40(1)(3) (output allocation). The report proposes corrective orders and administrative fines.
Under the law, the Commission may impose a surcharge of up to 20 percent of the relevant turnover affected by the collusion. The KFTC said it would seek to eliminate incentives for collusion that threatens consumer welfare and price stability.
The seven companies and 14 executives were previously referred to prosecutors in January 2026.
The companies have eight weeks from receipt of the report to submit written opinions and review evidence. The KFTC said it would convene the Commission to reach a final decision as swiftly as possible after ensuring the respondents’ procedural rights are protected.
