'Ice Cream Price Collusion' Binggrae, Supreme Court Upholds 200 Million Won Fine

[Financial News] Binggrae, which was brought to trial on charges of colluding on ice cream prices, has received a confirmed fine.
According to the legal community on the 4th, the Supreme Court of Korea’s First Division, presided over by Justice Shin Sookhee, upheld the previous ruling that imposed a 200 million won fine on Binggrae, which was indicted for violating the Monopoly Regulation and Fair Trade Act.
Binggrae was prosecuted for colluding with Lotte Wellfood between February 2016 and October 2019 on ice cream sales and supply prices, as well as dividing retail clients.
Additionally, Binggrae, along with Lotte Wellfood, Lotte Confectionery, and Haitai Confectionery & Foods, was also accused of prearranging the order of bidding and bid winners for ice cream supply contracts with Hyundai Motor Company from June 2017 to May 2019.
Previously, on February 2022, the Korea Fair Trade Commission (KFTC) issued corrective orders and imposed a total fine of approximately 135 billion won on four companies for colluding in the ice cream market, and referred some companies and executives to the prosecution.
The first trial sentenced Binggrae to a 200 million won fine. The court noted, "This case involved the four major domestic ice cream manufacturers repeatedly and continuously colluding across all business operations, including price increases, prohibiting business with competitors’ clients, reducing profit margins, limiting promotional items, and agreeing on bid winners in procurement auctions."
The court further stated, "Such actions not only undermined the fairness of bidding but also damaged the core intent of the Fair Trade Act, which aims to promote free competition, encourage creative business activities, protect consumers, and foster balanced economic development. The severity of the offense is therefore significant."
The appellate court maintained that "it appears the ice cream sales prices were determined by agreement," and the Supreme Court of Korea found no error in the previous judgment, dismissing the final appeal.
Meanwhile, executives from ice cream companies who were also brought to trial did not appeal, so the appellate court’s rulings were finalized. In the appeals process, Binggrae and Lotte Wellfood executives were each sentenced to one year in prison, suspended for two years, while executives from Lotte Confectionery and Haitai Confectionery & Foods received six months in prison, suspended for one year.

jisseo@fnnews.com Seo Min-ji Reporter