Seoul: The antitrust regulator announced it has initiated the necessary procedures to review potential penalties on seven companies accused of colluding to distribute market allocation and set flour product prices over nearly six years.

According to Yonhap News Agency, inspectors at the Fair Trade Commission (FTC) have completed a four-month investigation, concluding that the companies, which comprise 88 percent of the business-to-business market for domestic flour sales, formed a cartel to fix prices and allocate sales volume of flour products from November 2019 to October 2025. The companies involved include Dae Sun Flour Mills Co., Daehan Flour Mill Co., and CJ Cheiljedang Corp.

The inspectors estimated that the companies' unfair practices affected a combined revenue of 5.8 trillion won, proposing that the FTC impose fines and issue a corrective order. Under relevant laws, the FTC can levy a fine of up to 20 percent of the sales impacted by the collusive conduct.

The FTC stated it has commenced the review procedure of the investigation report to swiftly reach a final conclusion on the case. The report has also been sent to the companies to allow them to exercise their defensive rights. The watchdog emphasized its ongoing commitment to eradicating collusive practices to stabilize market prices for people's livelihoods.