At the first court hearing held on the 13th, Samyang Corporation and several former and current employees of CJ CheilJedang, who have been charged with colluding to fix sugar prices, acknowledged the allegations against them. Their decision to admit the charges at the outset marks a departure from the usual approach taken by large corporations, which typically involves denying wrongdoing and engaging in prolonged legal challenges, reported Chosun Biz.
The move is seen as unusual given that the same companies were penalised for similar conduct in 2007 and pursued the case through the courts until the Supreme Court finalised fines in 2011. Legal observers say the early admissions reflect heightened sensitivity to the current administrationтАЩs firm position on corporate price manipulation, which is viewed as increasing the burden on the public.
According to legal sources on the 15th, the Seoul Central District CourtтАЩs Criminal Division 5, presided over by Judge Ryu Ji-mi, opened the first trial involving Samyang Corporation, CJ CheilJedang and 11 of their present and former employees. During the hearing, CJ CheilJedangтАЩs legal representative said the company accepts the charges and is reflecting on its actions. Samyang CorporationтАЩs counsel also acknowledged most of the allegations, although a few defendants disputed parts of the factual claims.
The case is the first major criminal prosecution linked to alleged price coordination in South KoreaтАЩs sugar market. It is also notable because prosecutors initiated the investigation independently, without a formal complaint from the Korea Fair Trade Commission (KFTC).
Prosecutors allege that the companies coordinated the timing and scale of sugar price increases and adjustments between February 2021 and April 2025. The total value of the alleged collusion is estimated at around 3.27 trillion won.
In cases involving large corporations, defendants often deny charges when there is scope for legal dispute. However, legal circles noted that the defendants in this case admitted responsibility from the beginning, suggesting limited room to contest the evidence.
Analysts point to the governmentтАЩs strong stance on inflation as a key factor. President Lee Jae-myung has previously said that price stability is directly linked to peopleтАЩs livelihoods and has warned that collusion among companies cannot be ruled out when essential goods prices rise, instructing authorities to respond firmly.
The KFTC has also been investigating the matter since March 2024 and is expected to place the alleged sugar price collusion on the agenda of its full commission meeting next month. The full commission, the regulatorтАЩs highest decision-making body, will determine whether to impose penalties and other sanctions.
In 2007, CJ CheilJedang, Samyang Corporation and TS Corporation were fined a combined 51.1 billion won for similar conduct, following a lengthy legal process that concluded in 2011. Observers say the prospect of another drawn-out battle, combined with regulatory and public pressure, may have influenced the companiesтАЩ decision to cooperate.
Legal sources noted that challenging the case could have increased reputational and policy risks. They added that the companies appeared to adopt a cooperative stance early in the investigation to limit potential consequences.
The situation was also shaped by TS CorporationтАЩs application for leniency. Under the voluntary reporting programme, the first company to disclose collusion can receive reduced or waived penalties. Prosecutors accepted TS CorporationтАЩs request, exempting it from indictment. Once one participant provides detailed information, it becomes difficult for others to deny the allegations, legal experts said.
As multiple defendants are involved, some of whom are in custody, the court plans to separate the proceedings by company. Hearings related to CJ CheilJedang will continue with evidence confirmation on February 12, followed by witness examinations on March 9 and April 9. The trial involving Samyang Corporation is scheduled for March 26.
