Fair Trade Commission: "Ildong Foodis Provided Rebates to Obstetricians to Use Their Infant Formula... Corrective Order and 400 Million KRW Fine"

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 11th that it has decided to impose a corrective order and a fine of 408 million KRW on Ildong Foodis for agreeing with obstetrics hospitals and postpartum care centers to use its own formula milk, providing unfair benefits such as low-interest loans, formula milk, cash, and goods to attract customers.

According to the Fair Trade Commission, from September 2012 to May 2015, Ildong Foodis provided a total loan of 2.4 billion KRW at a low interest rate (3~5%) lower than the market interest rate (3.74~5.52%) while agreeing with three obstetrics hospitals on the principle of using only its formula milk for feeding.

Additionally, from June 2010 to June 2019, Ildong Foodis provided a total of 1.3034 billion KRW worth of its formula milk free of charge to 351 postpartum care centers. To encourage mothers at postpartum care centers to choose its formula milk, Ildong Foodis supplied its formula products such as 'Premium Goat Milk Infant Formula Stage 1' free of charge for feeding newborns.

Ildong Foodis also provided cash and goods to obstetrics hospitals and postpartum care centers. From December 2012 to August 2015, it agreed with two obstetrics hospitals and one postpartum care center to exclusively or primarily use its formula milk, paying a total of 209.98 million KRW in cash and interior costs. Furthermore, it provided goods such as dehumidifiers and TVs, covered interior costs free of charge, or paid advertising expenses on their behalf, offering economic benefits worth a total of 103.65 million KRW.

A Fair Trade Commission official stated, "This measure will eradicate abnormal competitive practices such as rebate provision and promote competition based on price, quality, and service, contributing to the establishment of a fair competitive order in the formula milk industry." He added, "From the consumer (mother)'s perspective, it is expected that they will be able to actively exercise their product choice rights by freely selecting and feeding formula milk according to their preferences."

This content was produced with the assistance of AI translation services.