South Korea’s antitrust regulator said on May 14 local time that it imposed a roughly $430000 fine on the Korea Egg Producers Association over allegations that the organization coordinated benchmark egg prices among member farms, while the government separately moved to review whether the group should be dissolved.
The Korea Fair Trade Commission said the association regularly determined wholesale benchmark prices for different egg sizes—including extra-large, large and medium eggs—and distributed the figures to producers through text messages and fax notices between January 2023 and January 2025.
The organization represents 580 farms accounting for about 56.4% of South Korea’s laying-hen population.
According to regulators, the association repeatedly reinforced the benchmark prices by reissuing them every Wednesday even when no formal price adjustments had been made. Authorities said actual market transaction prices closely mirrored the suggested benchmarks, effectively reducing price competition among producers.
The commission ordered the association to stop the practice, issue corrective notices and undergo compliance education in addition to paying a 594 million won penalty.
Wholesale benchmark prices for a carton of 30 eggs in the Seoul metropolitan area rose 9.4% between 2023 and 2025, climbing to 5296 won, or about $3.80, from 4841 won, according to the commission. Retail prices rose 4.6% over the same period to 6792 won, or roughly $4.90, per carton.
Meanwhile, egg production costs fell to 3856 won from 4060 won during the period, regulators said.
The commission also pointed to strong profitability among egg producers. Average net income for laying-hen farms reached 377.5 million won, or about $270000, in 2024, several times higher than earnings reported by chicken and hog farms.
Moon Jae-ho, director general of cartel investigations at the Fair Trade Commission, said the case was significant because it targeted what authorities described as industry-led price coordination in South Korea’s wholesale egg market.
The Ministry of Agriculture, Food and Rural Affairs said it is reviewing possible sanctions against the association, including whether it violated Article 38 of the country’s civil code, which allows authorities to revoke the charter of organizations deemed harmful to the public interest.
Officials also said the government plans to restructure the egg-pricing system by shifting benchmark price calculations to research institutes or public agencies. Authorities are additionally preparing standardized contracts requiring farmers and distributors to specify prices, product grades and transaction periods more clearly.
