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Photo = Fair Trade Commission |
[Alpha Biz= Kim Jisun] The Korea Fair Trade Commission (KFTC) has launched an on-site investigation into the Layer Chicken Association amid suspicions that the group played a leading role in driving egg prices to their highest levels in four years.
According to industry sources on June 16, the KFTC dispatched investigators to three locations, including the association’s headquarters in Osong, North Chungcheong Province, and its regional offices in Gyeonggi and South Chungcheong provinces. The investigation is focused on whether the association pressured its members to adhere to officially announced prices, potentially violating fair trade regulations.
A report from the Korea Rural Economic Institute forecasts that farm-gate egg prices in June could rise by up to 18.5% year-on-year. According to the Korea Institute for Animal Products Quality Evaluation, retail prices for a standard 30-egg carton have reached 7,026 won, surpassing the 7,000-won mark for the first time since July 2021.
While the government acknowledges that highly pathogenic avian influenza (HPAI) may have contributed to the price increase, it notes that fewer birds have been culled this year, suggesting the outbreak is not the primary driver of the price surge.
In April, the government announced plans to investigate possible price collusion related to eggs during a Vice Ministerial Meeting on Price Trends.
The Layer Chicken Association has rejected the allegations, claiming that rising prices are the result of stricter regulations on poultry farming conditions imposed by the government.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
