FTC Investigates Price-fixing of Noodle Makers

The Fair Trade Commission began an investigation on instant noodle makers to determine whether they agreed to raise the price of instant noodles, a necessity of the people.

The FTC announced yesterday that it found evidence that instant noodle makers colluded to raise noodle prices in February and that it had been investigating the makers.

The nation’s major noodle producers including Nongshim, Samyang Food, Ottogi, and Korea Yakult raised noodle prices by 15-16 percent from February to April, citing the surging flour price as the reason.

The FTC announced that it would thoroughly investigate price-fixing in sectors closely related with people’s daily lives or national competitiveness. Accordingly, the agency is also likely to conduct investigations on price-fixing of major necessities such as flour and sugar.

Meanwhile, noodle makers denied the suspicion of price-fixing, saying, “We have no choice but to raise the price due to the soaring prices of flour and palm oil.”

Nongshim, which accounts for 70 percent of the nation’s instant noodle market, explained, “If the nation’s largest noodle maker, Nongshim, raises the noodle price, other noodle makers follow the suit. It’s a common practice.”

parky@donga.com wiseweb@donga.com