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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Major starch and sweetener producers in South Korea have begun cutting prices as the Korea Fair Trade Commission (KFTC) launches an investigation into suspected price-fixing in the starch sweetener market.
According to industry sources, the KFTC has recently initiated a probe into alleged collusion among four companies—Daesang, Samyang, Sajo CPK, and CJ CheilJedang—which together dominate the domestic starch sweetener market.
Sajo Group’s starch sweetener manufacturing and sales arm, Sajo CPK, said on Sunday that it would cut prices of its major starch sweetener products by 3–5 percent. The price reductions apply to corn-based starch, glucose syrup, and fructose products across all distribution channels, including direct buyers, distributors, business-to-business (B2B), and business-to-consumer (B2C) sales.
CJ CheilJedang also announced that it would lower prices of its B2C starch sweetener products by up to 5 percent, following a 3–5 percent price cut on B2B starch sweeteners implemented last month. The company said the decision reflects recent declines in international raw material prices and aligns with the government’s price stabilization policy, adding that it hopes the move will help ease the burden on customers and consumers.
Samyang Corp. said it has begun rolling out price cuts of up to 6 percent on starch sweetener products starting this month, citing the government’s price stabilization efforts and the need to reduce cost pressures on its customers. The company added that it would continue to consider additional price adjustments based on changes in raw material costs and exchange rates.
Earlier, Daesang also announced price cuts of 5 percent on three oligosaccharide products—Cheongjeongwon oligosaccharide, apple oligosaccharide, and cooking oligosaccharide—as well as Cheongjeongwon corn syrup products sold through B2C channels. The company plans to reduce prices of its B2B products by an average of 3–5 percent as well.
The KFTC has recently expanded its antitrust investigations beyond starch sweeteners to other staple raw materials closely tied to consumer prices, including flour and sugar. Against this backdrop, flour milling and sugar refining companies currently facing price-fixing trials have also announced price cuts. Last month, CJ CheilJedang, Samyang Corp., Sajo DongA One, and Daehan Flour Mills said they would lower flour product prices by an average of 4–6 percent.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
