The corporate watchdog imposed heavy fines totaling W51.1 billion (US$1=W915) on the three. CJ Corp. was slapped with the largest fine of W22.7 billion, Samyang Corp. was fined W18 billion and TS Corp. W10.4 billion.

The FTC said it will refer Samyang Corp. and TS Corp. to prosecutors. CJ Corp. escaped prosecution and its fine was cut by half because it voluntarily reported its collusion.

The FTC said the three manufacturers met to decide production quotas when the import of raw sugar was liberalized in 1991. They decided that CJ Corp. would produce 48.1 percent of Korea's sugar, Samyang Corp. 32.4 percent and TS Corp. 19.5 percent.

Since then the companies held regular meetings to set prices and production levels, the FTC said. It's estimated the three companies earned W2.6 trillion in sales from the price fixing from 2001 to 2005.

According to OECD guidelines, the damage to consumers from price fixing is estimated at 15 to 20 percent of sales. That means the three sugar makers cost consumers about W520 billion in damages since 2001.

The corporate watchdog said the illegal activities allowed the three companies to enjoy gross margins of 40 to 48 percent, double the average gross margins of most manufacturers.

The investigation found that CJ Corp., which holds the largest market share, has been involved in price-fixing for three major life necessities since the company was found last year to have rigged prices on flour and detergent.

(englishnews@chosun.com )