Fair Trade Commission imposes 440 million KRW fine on 11 businesses for collusion in material analyzer bidding
11 Businesses Including Dongilsima Targeted
"9.3 Billion Won Bid Contract Winners Favoring Each Other"
[Asia Economy Reporter Moon Chaeseok] The Korea Fair Trade Commission (KFTC) has decided to issue corrective orders and impose fines totaling 445 million KRW on 11 businesses, including Dongilsimazu. The businesses are accused of colluding in 85 bids for purchasing material analyzers related to basic research conducted by government-funded research institutes and medical institutions between 2010 and 2017.
The KFTC explained that the 11 businesses, including Dongilsimazu, conspired to favor predetermined bidders in bids (contract scale of 9.3 billion KRW) for purchasing material analyzers necessary to verify components of pharmaceuticals, food, and other substances by government-funded research institutes and medical institutions. The predetermined bidders had proxy companies prepare bid documents on their behalf or set bid prices through emails and phone calls.
When public institutions announced bids for purchasing analyzers, the suppliers seeking to win the bids involved proxy companies to secure their own winning. The proxy companies accepted the requests, expecting reciprocal cooperation in the future. This constitutes a violation of Article 19, Paragraph 1, Subparagraph 8 of the Monopoly Regulation and Fair Trade Act. Accordingly, the KFTC decided to issue corrective orders and impose a total fine of 445 million KRW on the 11 businesses.
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Kim Taekyun, Secretary of the Cartel Division at the KFTC, stated, "It is significant that we uncovered long-term secret collusion in bids for purchasing material analyzers by public institutions and prevented further collusion in the related market." He added, "The KFTC plans to strengthen monitoring of collusion in public bids and actively promote preventive activities such as providing education and holding meetings with participating businesses."
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