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Sugar is displayed at a large supermarket in Seoul. (Photo = Yonhap News Agency) |
[Alpha Biz= Ellie Kim] A well-known regional bakery has filed a damages lawsuit against three major South Korean sugar refiners—CJ CheilJedang, Samyang Corporation, and Daehan Sugar—alleging losses caused by a price-fixing cartel. The case marks the first civil lawsuit filed following prosecutors’ findings in the sugar collusion investigation, with more similar suits expected to follow.
According to legal sources on April 22, a regional confectionery manufacturer and retailer, identified as Company A, filed the damages claim with the Seoul Central District Court the previous day. The company had reportedly purchased approximately KRW 200 million worth of sugar through wholesalers during the alleged collusion period.
The plaintiff is seeking KRW 20 million—equivalent to 10% of its purchase amount—along with delayed damages. The total claim amount could increase as the exact scale of losses is determined during the trial.
In its complaint, the company argued that the domestic sugar market has become entrenched in an oligopolistic structure dominated by the three refiners due to high tariffs, tariff-rate quotas, and barriers to entry for new players. “Distorted sugar prices have ultimately shifted the burden onto small businesses and consumers,” the filing stated.
Prosecutors previously announced the results of their investigation into the KRW 3.27 trillion sugar cartel case in November last year, indicting two senior executives who allegedly led the collusion under detention, while charging other executives, employees, and the companies without detention. Meanwhile, the Fair Trade Commission imposed corrective orders and a combined fine of KRW 408.3 billion on the three refiners.
Attorney Jung Tae-won of the class action center at LKB & Partners, which represents the plaintiff, said, “The companies maximized profits through collusion while shifting the burden onto small business owners and consumers, making their responsibility far from negligible.” He added that additional follow-up lawsuits are planned with other affected parties.
Legal experts note that the case could trigger a wave of similar lawsuits by affected businesses. However, smaller companies may hesitate to take legal action due to concerns over potential disadvantages in future raw material procurement, given their weaker bargaining power compared to large refiners. Calls for institutional reforms are also growing, with comparisons drawn to the United States, where the Department of Justice’s Antitrust Division may represent victims in class-action lawsuits in cartel cases.
메디컬투데이 Reporter Ellie Kim(press@alphabiz.co.kr)
[저작권자ⓒ 메디컬투데이. 무단전재-재배포 금지]
