[antitrust class action] allegations of nearly a decade of instant noodle price fixing by 4 South Korean companies

in ,

The Korean Fair Trade Commission found several South Korean food conglomerates to be colluding to fix prices in Korea, and now the original plaintiff is claiming the conspiracy extended to the US market. So Nong Shim, Ottogi, Samyang, and Korea Yakult/Paldo America have been named in an antitrust class action lawsuit, alleging they were part of a conspiracy to fix and increase the prices of Korean instant noodle products by 54% between 2001-2008.

The noodle companies blamed the price increases on rising costs of wheat flour, palm oil, vinyl wrapping, potato starch, and even the weather, Plaza says in the lawsuit. However, "As determined by the KFTC, the truth is that Korean Noodle price increases substantially exceeded increased input costs," the complaint states. Plaza Co. claims the conspiracy extended to the U.S. market, and charts year-by-year price increases from 2003 to 2008. Nong Shim's U.S. sales in 2006 totaled $47.7 million. The companies "sold hundreds of millions worth of noodles in the United States," the lawsuit says.

To be fair, as a college graduate and therefore a regular consumer of instant ramen noodle cups, the best being Nong Shim by virtue of my Korean then-boyfriend now-husband's preference for it, they are pretty high quality ramen noodles with large servings compared to the Maruchan instant noodles, which I see more often in America. (It was surprisingly difficult to find an actual photo of a Maruchan and Nong Shim cup with true size comparison on Google Image, but plenty of heated debates exist online about the major noodle brands.)

Sure, Nong Shim was about $2 more than the 99ยข Maruchan Instant Noodle cups, but you didn't get as heavy of that greasy, sadness feeling that comes with stuffing your stomach with cheap oil, starch, and sodium. I tried to eat a bowl recently and I couldn't stomach it, either because I'm much older, or lingering psychosomatic trauma of relying on them for late-night working sessions.

The Korean Fair Trade Commission fined Nong Shim 107.7 billion won, and Samyang 11.6 billion won. Ottogi was ordered to pay a 9.7 billion won fine, while Korea Yakult was hit with a 6.3 billion won fine, according to the English-language edition of the March 23, 2012 Yonhap News.

Still, as Joe Patrice from Above the Law (says)...I didn't know that stuff could be cheaper.

You can read the Courthouse News bulletin (here).