The Fair Trade Commission has begun an on-site investigation into price collusion allegations involving the Korea Egg Producers Association.
According to the industry on the 16th, the Fair Trade Commission is sending researchers to three locations, including the headquarters of the Korea Egg Producers Association in Osong, North Chungcheong Province, and its branches in Gyeonggi and South Chungcheong, to conduct an investigation regarding violations of the Fair Trade Act.
The Fair Trade Commission is said to be looking into whether the association effectively led the prices of the farm gate eggs through its announced prices and coerced member companies to comply with them. Such actions may fall under prohibited practices for business groups under the Fair Trade Act, and if prior price coordination among member companies is confirmed, collusion allegations may also be applied.
The Korea Egg Producers Association is a nonprofit corporation established in 2022 to protect the rights and interests of layer and breeding farms and promote the industry. The farm gate price announced by the association has risen from 146 won per egg in March to recently 190 won, marking an increase of about 30%. This is 6.0% higher than a year ago and 4.2% higher than the average.
The rise in farm gate prices has also affected consumer prices. As of May, the average consumer price for a pack of 30 special eggs is 7,026 won, surpassing 7,000 won for the first time in nearly four years since July 2021.
A Fair Trade Commission official noted, "I cannot confirm whether there will be an investigation into individual cases or the specific details," but added, "If unfair practices are confirmed, we plan to take strict action in accordance with the relevant laws."