FTC launches investigation into CJ trademark royalties and starch manufacturers 7,476hundred million won in fines
The Fair Trade Commission 7month 7day launched an investigation into alleged unfair support involving CJ Group’s trademark royalties, imposing total fines of 4starch-industry companies amounting to 7,476hundred million won. NongHyup also received a fine of 20hundred million won for price-fixing at gas stations in the Jeju region.
The Fair Trade Commission said it began investigating CJ Group’s trademark royalties for possible unfair support on 7month 7day. The investigation could directly affect the costs and profit structures of the companies concerned, making it necessary for investors to check the matter.
According to reports, 54% of sales generated by CJ affiliates is said to constitute the so-called “signboard fees,” which are explained as transactions among affiliates, including trademark rights.
The FTC is requesting the submission of materials and conducting its investigation, focusing on the basis for CJ’s trademark royalty calculations and the possibility of transferring profits among affiliates.
In the starch industry, 4 companies were found to have allegedly colluded on prices for more than 7 years and were fined a total of 7,476 hundred million won. The fine is known to be the largest ever imposed in an enforcement case.
The Fair Trade Commission's investigation covered not only alleged price fixing but also indications of bid rigging, encompassing the entire bidding process concerned.
In a case concerning the Jeju region, the National Agricultural Cooperative Federation was fined 20 hundred million won for colluding on gas station prices.
The Fair Trade Commission is conducting additional reviews and disposition procedures in these cases, and the companies concerned are reportedly cooperating with the investigation.