The Fair Trade Commission (FTC) of South Korea has begun sanction procedures against seven companies involved in bid rigging for specimen testing services over the past 12 years.
On August 11, the FTC announced that it had sent a report detailing the findings of its investigation into the bid rigging case to the seven companies involved in the specimen testing services. This report, akin to an indictment, marks the start of the review process.
Specimen testing is a critical medical procedure that involves collecting blood, urine, and tissue samples to determine the presence of infections or cancer. Hospitals often outsource these tests to specialized institutions due to the complexity of the procedures. The companies under investigation include: Green Cross Medical Foundation, GC Cell, Samkwang Medical Foundation, Samkwang Lab Tree, Seoul Medical Science Institute, Seegene Medical Foundation, and Ewon Medical Foundation.
FTC investigators found that from January 2012 to October 2024, these companies colluded on bids for 706 specimen testing service contracts issued by public hospitals and other entities. The collusion is estimated to have affected bids worth approximately 294 billion won.
The fines imposed are expected to be substantial. FTC investigators have classified the actions as 'very serious violations.' In cases of severe violations, fines can reach up to 20% of the related revenue.
Upon receiving the report, the companies have eight weeks to submit written opinions and access evidence for their defense. The FTC plans to hold a committee meeting to finalize the level of sanctions once the defense procedures are completed.
* This article has been translated by AI.
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