Joo Byeong-gi, Chair of the Fair Trade Commission [Photo: Yonhap News]
Joo Byeong-gi, the Chair of the Fair Trade Commission, stated on May 20 that it is fortunate that efforts by the commission and the Ministry of Agriculture, Food and Rural Affairs have led to price reductions for processed foods such as bread, ramen, and snacks since March.
During a meeting of the Special Task Force on Consumer Prices held at the Government Seoul Building, Joo noted that the flour milling industry voluntarily reduced flour prices by up to 8.2% during the commission's investigation and review process.
He added, "The Fair Trade Commission has imposed independent price re-determination orders to restore competition prior to collusion and has also established new disciplinary regulations to eradicate repeated collusion."
The meeting also included a report on the review results regarding collusion in essential consumer goods, specifically eggs and flour. Joo explained that the Fair Trade Commission decided to impose a fine of approximately 600 million won on the Korea Egg Producers Association for artificially setting the standard price for egg transactions under the pretext of protecting farmers' rights and compelling farmers to comply.
He emphasized that such collusion has been a major reason for rapid price increases and slow decreases for consumers.
Following the commission's detection of collusion, there are expectations for improvements in the distribution structure. Joo stated, "The Ministry of Agriculture, Food and Rural Affairs plans to enhance management and improve the distribution structure by excluding policy support, revoking association establishment permits, and establishing a verification and announcement system for egg farm prices. This is a significant achievement resulting from collaboration among relevant ministries to detect unfair practices and improve the distribution structure."
Joo also announced plans to strengthen monitoring of collusion activities taking advantage of supply chain disruptions caused by the Middle East conflict. He mentioned that the commission is conducting on-site investigations into four manufacturers and sellers of polyvinyl chloride (PVC) and plasticizers suspected of collusion amid recent supply instability. He stated, "We plan to impose strict penalties if any legal violations are detected."
During a meeting of the Special Task Force on Consumer Prices held at the Government Seoul Building, Joo noted that the flour milling industry voluntarily reduced flour prices by up to 8.2% during the commission's investigation and review process.
He added, "The Fair Trade Commission has imposed independent price re-determination orders to restore competition prior to collusion and has also established new disciplinary regulations to eradicate repeated collusion."
The meeting also included a report on the review results regarding collusion in essential consumer goods, specifically eggs and flour. Joo explained that the Fair Trade Commission decided to impose a fine of approximately 600 million won on the Korea Egg Producers Association for artificially setting the standard price for egg transactions under the pretext of protecting farmers' rights and compelling farmers to comply.
He emphasized that such collusion has been a major reason for rapid price increases and slow decreases for consumers.
Following the commission's detection of collusion, there are expectations for improvements in the distribution structure. Joo stated, "The Ministry of Agriculture, Food and Rural Affairs plans to enhance management and improve the distribution structure by excluding policy support, revoking association establishment permits, and establishing a verification and announcement system for egg farm prices. This is a significant achievement resulting from collaboration among relevant ministries to detect unfair practices and improve the distribution structure."
Joo also announced plans to strengthen monitoring of collusion activities taking advantage of supply chain disruptions caused by the Middle East conflict. He mentioned that the commission is conducting on-site investigations into four manufacturers and sellers of polyvinyl chloride (PVC) and plasticizers suspected of collusion amid recent supply instability. He stated, "We plan to impose strict penalties if any legal violations are detected."
* This article has been translated by AI.
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