Cancellation of KFTC Decision in Animal Feed Cartel

In 2015, the KFTC imposed administrative fines of KRW 77.3 billion against 11 major feed companies, including Cargill Agri Purina (“Purina”), representing 43% of the assorted feed market, for colluding to fix the prices of swine, chicken and bovine feed, among others, on 16 occasions from October 2006 to November 2010. 

Lee & Ko represented Purina in the administrative lawsuit to cancel the KFTC’s decision, which was ultimately decided by the Supreme Court. Lee & Ko strongly asserted that the KFTC’s decision must be cancelled as (i) the exchange of information between the 11 companies was not made with the intent or purpose to fix the prices of mixed feed, (ii) the Korean assorted feed market is specialized with diverse categories and products, making it difficult/impractical for companies to collude to fix the prices of products, and (iii) there was not a concerted increase or decrease in the prices of assorted feed by the 11 companies.

The Supreme Court accepted Lee & Ko’s position and ruled that the KFTC’s decision should be overturned based on the above reasoning. Korea’s highest court stated that the KFTC’s decision should be cancelled and recommended the KFTC to voluntarily cancel its corrective order and administrative fines against Purina. Thereafter, the KFTC accepted the Supreme Court’s recommendation and voluntarily cancelled its decision, including the corrective order and administrative fines against Purina.