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Dong Suh Foods products displayed at a large supermarket in Seoul. (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] South Korea’s Fair Trade Commission (FTC) is investigating whether Dong Suh Foods engaged in unfair practices during its recent price increase of coffee products, industry sources said on March 16.
FTC investigators were dispatched to Dong Suh Foods’ headquarters earlier in the day to secure documents related to the decision-making process behind the pricing of its coffee mix products.
The antitrust regulator is reportedly examining whether Dong Suh Foods, the leading company in the domestic coffee mix market, abused its dominant market position to raise product prices unfairly.
Under the Monopoly Regulation and Fair Trade Act, dominant market players—defined as companies with significant control over a market—are prohibited from unfairly determining the prices of goods or services.
Violations of the law can result in a surcharge of up to 6% of the company’s relevant sales or a fine of up to 2 billion won.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
