Kyokuto Kaihatsu Kogyo faces JFTC scrutiny over suspected cartel

Kyokuto Kaihatsu Kogyo (TSE:7226) announced it has received a notice of hearing of opinions from the JFTC regarding a suspected cartel related to the sale of "Upper body" products. The probe, initiated on November 12, 2024, involved on-site inspections of Kyokuto Kaihatsu Kogyo and its subsidiary, Nippon Trex Co., Ltd. The potential surcharge payment order (draft) outlined in the notice is JPY2,601,890 thousand for Kyokuto Kaihatsu Kogyo and JPY3,323,640 thousand for Nippon Trex Co. The company is currently assessing the potential impact on its consolidated financial results for the fiscal year ending March 2026 and pledges full cooperation with the JFTC.