Harim Co., South Korea's largest poultry processor, is challenging a hefty fine from the Fair Trade Commission in court, attributing the alleged price-fixing to government supply controls. The company and its affiliate face two ongoing lawsuits over penalties totaling more than 107 billion won. The case draws attention amid President Lee Jae Myung's push for stricter measures against price collusion.
Harim Co., South Korea's largest poultry-processing company, filed a lawsuit in 2022 alongside its affiliate Orpum Co. to overturn the Korea Fair Trade Commission's (FTC) decision imposing a combined fine of 94.2 billion won ($63.4 million) for colluding to fix fresh chicken prices. This follows a similar 2021 lawsuit challenging a 13 billion-won penalty for other price-fixing allegations.
The company maintains that the alleged collusion arose from the government's supply-and-demand management policy. "As the case is currently pending in court, we cannot comment in detail," a company official said.
In addition to Harim's administrative lawsuit against the fine, shareholders have initiated separate legal action against Harim Group Chairman Kim Hong-guk, seeking to hold him personally accountable for the alleged collusion.
The legal battles occur as President Lee Jae Myung has urged tougher penalties for practices involving secret conspiracies with industry rivals to fix commodity prices. In response, prosecutors have begun an investigation, and the FTC is considering issuing a price recalibration order for the first time in 20 years.
Harim's headquarters is located in Iksan, North Jeolla Province, and the case highlights ongoing concerns over pricing stability in the domestic poultry sector.
