Fair Trade Commission to Scrutinize School Uniform Costs and Margins... Launches 'Microscopic Analysis' to Eliminate Price Inflation

Parents and students visiting the school uniform sharing market at Seodaemun-gu Office in Seoul are looking over the school uniforms. Photo by The Asia Business Daily DB

원본보기 아이콘

The Fair Trade Commission has launched a "microscopic analysis" following a nationwide investigation aimed at eradicating endemic collusion practices in the school uniform market. The goal is to diagnose the root causes of inflated prices and implement institutional reforms. Going beyond simple sanctions, the commission intends to dissect the entire market-including the cost structure of school uniforms and distribution margins-in order to reduce the burden on consumers.

According to relevant ministries on the 4th, the Fair Trade Commission has recently begun a full-fledged study on the analysis of the school uniform market and potential improvement measures. Through this research project, the commission plans to closely examine the overall domestic school uniform market, including its size, characteristics, business participants’ behavior, and distribution structure. In particular, by reviewing the cost structure and distribution expenses by product type and business operator, the commission aims to conduct an in-depth analysis of pricing factors and clarify the so-called "opaque margin" structure. In addition, the commission will also investigate school uniform systems and market conditions in major countries such as Japan, the UK, and Australia, and conduct comparative analyses with the Korean system.

This review of improvement measures is closely linked with the "nationwide school uniform cost survey" currently being conducted by the Ministry of Education. Based on collected data, the Fair Trade Commission plans to identify the actual supply prices and the method of selecting successful bidders under the "school-led purchasing system," as well as to analyze cases of unfair practices such as bid rigging in order to uncover anticompetitive factors. The school-led purchasing system refers to a system in which schools select school uniform suppliers through a bidding process.

Joo Byungki, Chairman of the Korea Fair Trade Commission, is attending and speaking at the Task Force meeting on Special Management of Living Expenses Prices held at the Government Seoul Office in Jongno-gu, Seoul. 2026.2.26 Photo by Jo Yongjun

원본보기 아이콘

This initiative is an extension of Fair Trade Commission Chairman Joo Byungki's recently announced determination to eliminate collusion in the school uniform sector. Chairman Joo stated that "school uniforms are a category plagued by habitual collusion," and announced that the headquarters and five regional offices have been mobilized to launch a nationwide investigation into four manufacturers-Hyungji Elite, Smart, Ivy Club, and School Looks-as well as their dealers across the country. In addition, the Fair Trade Commission is scheduled to deliberate within this month on a school uniform bid-rigging case involving 27 suppliers at 136 schools in the Gwangju region. While the ongoing investigation serves as an ex-post sanction for illegal activities, this new analysis is primarily a preemptive measure aimed at correcting unreasonable practices that restrict market competition or increase cost burdens.

Meanwhile, the government has launched large-scale measures following President Lee Jaemyung's reference to school uniforms as "back-breakers." Efforts are underway to abolish low-utility formal uniforms and promote the adoption of daily-wear uniforms. The government is also working to restructure the system so that, even after receiving subsidies (around 300,000 won per municipality), families are not required to pay additional costs for school uniforms. Additionally, the Ministry of Education is conducting a "comprehensive school uniform survey" targeting approximately 5,700 middle and high schools nationwide. The "school-led purchasing system," identified as one of the causes of collusion, is being reformed to shift the market environment from large brands to small business operators by awarding additional points to producer cooperatives.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.