52 executives indicted for fixing prices of flour, sugar, electrical parts

▲ This undated file photo shows sugar products on display at a supermarket. (Yonhap)

price-fixing-crackdown

52 executives indicted for fixing prices of flour, sugar, electrical parts

SEOUL, Feb. 2 (Yonhap) -- The prosecution said Monday it has indicted 52 executives at a dozen companies since last September on charges of colluding to fix flour and sugar prices, and rigging bids for electrical components.

The Seoul Central District Prosecutors Office said the indicted executives are accused of having orchestrated nearly 10 trillion won (US$6.84 billion) worth of price-fixing and bid rigging, raising the prices of flour, sugar and electricity, all closely related to people's lives.

In the flour sector, 20 executives of six oligopolistic producers -- Daehan Flour Mills, Sajo Donga One, Samyang Corp., Daesun Flour Mills, Samhwa Flour Mills and Hantop Inc. -- were referred to trials without detention.

They are suspected of disrupting market order by agreeing to determine the scope and timing of flour price fluctuations from January 2020 to October 2025, the prosecution said, estimating the value of their price-fixing at 5.99 trillion won. The price of flour rose by up to 42.4 percent during the six-year period, it added.

In the sugar market, CJ CheilJedang and Samyang Corp. were caught colluding to fix their price change scope and timing between February 2021 and April last year, the prosecution said, putting the value of their price-fixing at 3.27 trillion won. Sugar prices also rose by up to 66.7 percent in that period.

Two of the sugar company executives were indicted after being put under arrest, with nine others referred to trials without detention, the prosecution noted.

In the electricity sector, 10 companies, including Hyosung Heavy Industries, HD Hyundai Electric and LS Electric, were caught rigging 677 billion won worth of bids for state power utility Korea Electric Power Corp. from March 2015 to September 2022. Four executives were referred to trials after being arrested, with 15 others indicted without detention, the prosecution said.

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