CJ Cheiljedang Corp., a leading South Korean food manufacturer, issued a formal apology on Tuesday regarding allegations of sugar price-fixing.
“We deeply regret and apologize for causing concern,” stated CEO Sohn Kyung-shik in a formal statement during the company’s annual general shareholders meeting. “We are committed to completely eliminating past unethical practices and rebuilding our organizational structure and corporate culture from the ground up. We will implement stringent measures to ensure such issues do not reoccur.”
The apology follows a substantial fine of 408.3 billion won (US$284 million) imposed by the Fair Trade Commission (FTC) last month on CJ Cheiljedang and other South Korean sugar producers. The fines were issued due to unfair trade practices involving collusion on sugar prices in business-to-business transactions.
The company is also currently under investigation by the FTC for alleged collusion in flour pricing.
Prior to this, CJ Cheiljedang had already issued an apology concerning the allegations and subsequently reduced the prices of both sugar and flour products.
During the annual general shareholders meeting, CJ Cheiljedang also presented its strategy to become a premier global food company. This strategy focuses on accelerating growth in key strategic product areas, including Korean cuisine, which is experiencing increasing global popularity.
As part of its future development, CJ Cheiljedang also plans to expand its presence in high-value healthcare sectors, aiming to benefit from the growing aging population and increasing focus on wellness trends.
