"A 5% cut in flour prices is not enough... They should be reduced by at least 10%" says KFTC Chairperson Joo Byung-ki

[Financial News] Joo Byung-ki, Chairperson of the Korea Fair Trade Commission (KFTC), commented on the recent flour price-fixing case on the 23rd, stating, "It seems reasonable to lower prices by at least around 10%."
At a policy briefing to the National Policy Committee that day, Joo said, "Since raw material prices have fallen, even by rough estimation, it seems appropriate for prices to be reduced by more than 10%." He was responding to Kim Hyun-jung, a lawmaker from the Democratic Party of Korea (DPK), who pointed out that the flour mills accused of collusion had cut flour prices by only about 5%, arguing that the reduction was insufficient.
On the 19th, the KFTC sent an examination report to seven flour milling companies — DAESUN Flour Mills, Daehan Flour Mills, SAJODONGAONE, Samyang Corporation, Samhwa Flour Mills, CJ CheilJedang, and Hantop — and initiated a review at a plenary meeting. The examination report is equivalent to an indictment in a criminal trial and sets out the violations identified during the investigation along with the proposed sanctions. The final level of sanctions will be decided and confirmed through a resolution at the plenary meeting.
Regarding criticism that bread prices, which depend on flour as a key ingredient, have not fallen sufficiently, Joo said, "We will continue to monitor prices so that they keep declining," adding, "When sugar and flour prices fall, food processing companies that use these ingredients must also implement additional price cuts."
The issue of abolishing the exclusive right to file a complaint also came under scrutiny at the National Policy Committee that day. In response to a question from Yoon Han-hong, Chairperson of the National Policy Committee, who asked whether abolishing the exclusive right to file a complaint was his personal conviction, Joo answered, "It is not only my personal belief, but in general, advanced economies have developed their legal systems in that direction."
The exclusive right to file a complaint is a system under which prosecutors can investigate violations of the Monopoly Regulation and Fair Trade Act (MRFTA) only when the KFTC files a complaint.
Addressing concerns that abolishing the exclusive right to file a complaint could increase the burden on companies, Joo stated, "Even so, other advanced countries are not experiencing excessive burdens," and added, "We need to revise the criminal penalty provisions so that corporate burdens do not become excessive, and establish procedures to prevent conflicts between the criminal justice system and administrative sanctions."

hippo@fnnews.com Kim Chan-mi Reporter