Ramyun makers under FTC probe over suspected price collusion

The Korea Fair Trade Commission has launched an on-site investigation into ramyun manufacturers over suspected price collusion, extending its probe beyond the processed food sector.

According to industry sources Wednesday, the Fair Trade Commission's special investigation unit, established this month, has dispatched inspectors to Nongshim, Samyang Foods, Paldo and Ottogi. The on-site inspection is expected to last about a week.

The Fair Trade Commission launched the investigation after identifying signs that the companies may have coordinated ramyun retail prices in advance.

The special investigation unit, created earlier this month, focuses on serious unfair trade practices — including collusion affecting everyday consumer prices, large-scale consumer harm cases and monopolistic behavior in platform markets. Industry observers say the unit effectively revives the so-called "grim reaper of the business world," an investigation bureau disbanded 21 years ago.

The unit conducted its first on-site inspection in mid-October, targeting Daesang, Ottogi and CJ CheilJedang. That probe examined whether the companies had jointly set prices for processed foods including kimchi, tofu, cooking oils, gift sets, instant rice and fermented sauces.

The current ramyun industry probe is the second food-sector collusion investigation by the unit. It signals the Fair Trade Commission's resolve to crack down on unfair practices in areas directly tied to people's livelihoods. However, the commission has previously withdrawn sanctions in a ramyun price-fixing case.

In 2012, the Fair Trade Commission imposed a combined 135.4 billion won ($102 million) in fines on Nongshim, Samyang Foods, Ottogi and Korea Yakult, alleging they had agreed in advance to raise ramyun prices over a nine-year period. The Supreme Court, however, overturned the lower court ruling that had upheld the collusion finding and remanded the case.

In response, the Fair Trade Commission rescinded its corrective orders and fine decisions on its own authority in 2016.

A Fair Trade Commission official declined to comment, saying the agency "cannot confirm details related to individual cases."