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Cartel Probes Spur Fresh Flour and Bakery Price Cuts in South Korea

Antitrust investigations into alleged flour and sugar cartels are pressuring suppliers and bakeries to pass lower costs to consumers.

Overview

  • CJ Cheiljedang will cut flour prices by an additional 5% on average for both B2B and retail buyers, adding to earlier reductions that bring some categories close to a 10% drop this year.
  • The Fair Trade Commission’s chairman, Ju Biung-ghi, urged flour price reductions of at least around 10% in light of suspected industry collusion.
  • Paris Baguette will lower recommended prices on 11 items starting March 13 and introduce a 1,000‑won value croissant, with staple breads trimmed by 100 won and selected cakes also reduced.
  • CJ Foodville’s Tous les Jours will reduce prices on 17 bread and cake products by an average of 8.2%, with retail cuts taking effect March 12 and ranging from 100 to 1,100 won, plus one character cake down 10,000 won.
  • Prosecutors have indicted several flour and sugar producers on collusion charges, and industry officials report wholesale declines of about 16.5% for sugar and around 5% for flour that are now flowing through to retail pricing.