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A consumer checks sugar products at a major supermarket in Seoul. (Photo: Yonhap News) |
[Alpha Biz= Kim Jisun] SEOUL, South Korea — Feb 5, 2026 — South Korea’s leading food manufacturers, including CJ CheilJedang and Samyang Corp., have announced price reductions of up to 6% for all sugar and flour products. While the companies cite cooperation with national inflation control efforts, industry analysts view the move as a direct response to recent criminal indictments involving price-fixing cartels.
■ Comprehensive Price Reductions for Essential Staples CJ CheilJedang announced on February 5 that it will reduce the prices of its entire consumer sugar and flour lineup by an average of 5% to 5.5%, with maximum cuts reaching 6%. This follows a similar price reduction for industrial-use products implemented early last month. Popular products such as Beksul White/Brown Sugar and various all-purpose flours will see immediate adjustments.
Samyang Corp. also confirmed price cuts of 4% to 6% across its consumer and industrial segments, while Sajo Dongawon will lower prices for specialized flours used in bakeries and Chinese cuisine by an average of 5.9%.
■ Legal Consequences and Presidential Directive The price adjustments come in the wake of a massive investigation by the Seoul Central District Prosecutors' Office. On February 2, prosecutors indicted 52 individuals from six flour milling companies (Daehan Flour Mills, Sajo Dongawon, Samyang Corp., Daesun Flour Mills, Samwha Flour Mills, and Hantop) and two sugar refiners (CJ CheilJedang and Samyang Corp.) for market collusion.
President Lee Jae-myung addressed the findings during a senior secretaries' meeting on the same day, issuing a stern warning against anti-competitive behavior. "Forcing high prices on the public through monopolies damages the entire nation," President Lee stated. "I urge the full mobilization of state authority to rectify these practices."
■ Expanding Probe into the Poultry Industry The crackdown on price-fixing is expanding to other essential food items. The Korea Fair Trade Commission (KFTC) recently issued a "Review Report"—equivalent to an indictment—to the Korea Egg Poultry Association. The KFTC alleges that the association manipulated egg prices through "suggested price" announcements since 2023, contributing to a 10-month streak of year-on-year price increases.
While the association attributed rising costs to Avian Influenza (AI) and government regulatory changes, the KFTC has concluded that price-fixing was the primary driver behind the 9.2% surge in egg prices recorded last September—the highest in four years.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
