March 23, 2022

15 South Korean poultry processors fined US$144 million for price fixing

South Korea's Fair Trade Commission (FTC) said it will fine 15 poultry processors a combined KRW 175.8 billion (~US$144 million; KRW 1000 = US$0.82) for price fixing, Yonhap News Agency reported.

The companies, which include South Korea's poultry industry leader Harim Co. and Orpum Co, were deemed to have colluded to fix prices and chicken supplies on 45 occasions between November 2005 and July 2017.

The 15 companies hold a 77% combined market share and their 12-year long price fixing has resulted in soaring chicken prices.

16 companies were noted to be part of the price fixing collusion, but one company has applied for a court receivership.

Harim will be fined KRW 40.6 billion (~US$33.3 million) tentatively, followed by KRW 25.6 billion (~US$21 million) for Orpum and KRW 25 billion (~US$20.5 million) for Maniker Co.

South Korea's FTC will also file a complaint with the prosecution against five companies, including Orpum and HanGang Food Co.

In October 2021, seven chicken processing companies including Harim and Orpum were fined KRW 25.1 billon (~US$20.6 million) for price fixing of chickens used for "samgyetang", a Korean ginseng chicken soup.

-      Yonhap News Agency