President Lee Orders Nationwide Task Force to Combat Price‑Fixing After Massive Indictments
Updated (3 articles)
Lee Mobilizes Government Power to Stabilize Prices On February 5, 2026 President Lee Jae Myung instructed aides at Cheong Wa Dae to deploy every state instrument to curb price‑fixing and stabilize daily‑necessity costs, stressing that consumer relief outweighs macro‑economic gains [1]. He emphasized that high prices of staples must be corrected regardless of broader indicators. The directive was delivered in a meeting with senior secretaries, underscoring urgency.
Indictments of 52 Executives Trigger Immediate Action Prosecutors announced on February 2 that 52 executives from milling, sugar and power‑sector firms faced indictment for colluding on contracts worth roughly 10 trillion won (≈ US$6.8 billion) [2]. President Lee praised the “significant results” on X, a rare public commendation, and ordered the prosecution to brief the Cabinet. He called for tighter penalties, profit confiscation, and price restoration to deter future collusion.
Proposed Task Force and Regulatory Measures Lee proposed establishing a dedicated task force to monitor prices intensively for a set period, aiming to address structural distribution costs in agriculture [1]. He also directed officials to consider raising legal penalties, seizing illicit gains, and restoring unfairly increased prices [2]. Both articles highlight the administration’s push for stronger regulatory tools alongside the task force.
Background: September Cabinet Directive Initiated Probe The price‑fixing investigation originated after Lee’s September 2025 Cabinet meeting, which ordered a more active government response to rising everyday‑goods prices [1][2]. Prosecutors opened the case covering the period through January 2026, linking the current indictments to that earlier policy shift. This background explains the rapid escalation from investigation to executive action.
Sources
-
1.
Yonhap: President Lee Orders Aggressive Action Against Price Fixing – Details Lee’s Feb 5 directive to mobilize all state power, form a price‑monitoring task force, and prioritize consumer price stability over macro indicators .
-
2.
Yonhap: South Korean President Praises Indictments in Major Price‑Fixing Probe – Reports the Feb 2 indictment of 52 executives, Lee’s X commendation, and his call for harsher penalties and Cabinet briefing .
Timeline
Sep 2025 – President Lee Jae Myung orders a more active government response to rising everyday‑goods prices during a Cabinet meeting, setting the stage for the price‑fixing investigation that later targets milling, sugar and power‑sector contracts [2].
Jan 27, 2026 – Finance Minister Koo Yun‑cheol announces a 39 trillion‑won Lunar New Year support package, including up to 50 % discounts on mackerel, expanded cashback on state‑issued gift certificates, and loan guarantees reaching 58 trillion won for self‑employed workers and SMEs; the plan also pledges intensified investigations into collusion on sugar, flour, eggs and other staples ahead of the Feb 16‑18 holiday [3].
Feb 2, 2026 – President Lee praises prosecutors for indicting 52 executives on price‑fixing charges involving flour, sugar and electricity, posting “Prosecutors achieved significant results” on X and directing the prosecution to present its findings at the upcoming Cabinet meeting while urging tougher penalties, profit confiscation and price‑restoration measures [2].
Feb 5, 2026 – In a meeting at Cheong Wa Dae with senior secretaries, President Lee orders all state power to curb price fixing, proposes a dedicated task force to monitor staple prices for a set period, and warns that “even if macroeconomic indicators improve, citizens will not feel better unless daily‑necessity prices become stable,” emphasizing that price stability outweighs any indicator gains [1].
Late Feb 2026 (upcoming) – The prosecution is slated to brief the Cabinet on the price‑fixing investigation’s findings, enabling the administration to consider legal reforms such as higher penalties and profit confiscation, as outlined by President Lee in his Feb 2 directive [2].
Early 2026 (future) – The proposed task force on price monitoring is expected to be established shortly after Feb 5, tasked with intensive oversight of agricultural distribution costs and staple‑price fluctuations, reflecting Lee’s call for aggressive action against monopoly abuse [1].