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| ▲ This undated file photo shows flour products displayed at a supermarket in Seoul. (Yonhap) |
CJ Cheiljedang-price cut
CJ Cheiljedang to cut flour prices by additional 5 pct; bakery chain to lower costs
SEOUL, Feb. 26 (Yonhap) -- CJ Cheiljedang Corp., a major South Korean food company, said Thursday it will lower prices of its flour products for both business-to-business (B2B) and retail consumers by an additional 5 percent on average.
The move follows earlier price cuts of 4 percent for B2B products and 5.5 percent for retail consumer products, bringing total price cuts since the beginning of the year to nearly 10 percent in some categories.
The decision comes after Fair Trade Commission (FTC) Chairman Ju Biung-ghi said earlier this week that flour prices should be lowered by at least around 10 percent in light of alleged industry collusion practices.
CJ Cheiljedang is currently under investigation by the FTC over suspected collusion in flour pricing. It has recently faced hefty fines for colluding with two smaller rivals to fix sugar prices.
A company official said the additional price cut reflects efforts to align with the government's price stabilization policy despite difficult business conditions.
Separately, CJ Foodville Corp, which operates the bakery chain Tous les Jours, said it will also reduce prices of 17 bread and cake products by an average of 8.2 percent.
Earlier in the day, Paris Baguette, a major bakery franchise under South Korean food and beverage giant SPC Group, announced a plan to lower prices of 11 food items starting next month.
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