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Pork Suppliers Indicted for Price-Fixing Worth 1.2 Trillion Won Over 6 Years



Distributors and individuals accused of colluding on the prices of pork supplied to major supermarkets have been sent to trial. Circumstances revealed that they systematically concealed evidence related to the crime once authorities began investigating.

Reporter An Huijae brings us the details.



The Seoul Eastern District Prosecutors' Office announced that it is bringing six major pork distribution companies to trial on charges of violating the Fair Trade Act.

Twelve executives and employees were also indicted alongside them.

According to prosecutors, these companies sold 1.2 trillion won worth of pork to E-mart over a period of six years starting in 2017, engaging in price-fixing during the process.

The prosecution's investigation revealed that they agreed on fluctuations in estimated pork quotes supplied to E-mart and frequently shared information with one another.

In particular, starting in 2021, they continued their collective collusion through secret Telegram group chats that were difficult to track. When the Fair Trade Commission launched an on-site investigation in 2023, it was confirmed that they acted systematically, such as deleting messenger chat histories and various materials containing related circumstances, with even corporate compliance officers ordering the deletion of related data.

[Lee Jung-ho / Chief of Criminal Division 6, Seoul Eastern District Prosecutors' Office: There were acts obstructing the investigation by deleting related evidence at a significant number of companies, and compliance management personnel also participated, systematically concealing the crimes....]

The prosecution, which launched a formal investigation in April following a complaint by the Fair Trade Commission, emphasized that it uncovered the 1.2 trillion won price-fixing crime within three months.

The prosecution explained that after the collusion was detected, while the consumer price index and wholesale prices for pork rose, supermarket pork belly prices actually fell. They added that these crimes, which have settled into a chronic practice, severely impacted price stability, driving up E-mart's pork selling prices by at least 20% or more.

The prosecution emphasized that it will respond sternly to fair trade offenses, including price-fixing that inflicts severe damage on the livelihoods of ordinary citizens.

(Photo: Yonhap News / Video by Joo Yong-jin / Video Editing by Choi Hye-ran)

※ Please note: This article was translated by AI and may contain errors.
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