Mar 18 • 03:02 UTC 🇰🇷 Korea Hankyoreh (KR)

Gwangju school uniform companies colluded 260 times over 3 years... fined 320 million won

The Korea Fair Trade Commission imposed a fine of 320 million won on 27 Gwangju school uniform companies for colluding on price bids.

The Korea Fair Trade Commission (KFTC) has penalized 27 school uniform companies in Gwangju with a total fine of 320 million won for collusion on bidding prices. The KFTC announced on the 18th that these companies had agreed on which entity would win the bidding and at what price before the bids were officially announced, leading to a total of 260 collusion cases between 2021 and 2023. According to the Commission, 226 of these bids resulted in the newly agreed winner being selected, which has raised concerns over unfair practices impacting student costs.

The collusion involved companies contacting each other upon the announcement of the school uniform procurement bid to reach a consensus on the winner. Those companies willing to act as 'bidders' submitted intentionally inflated prices or poorly executed specifications to facilitate the victor's selection. The KFTC finds that this conduct not only violates fair trade laws but also poses a direct financial burden on students and their families.

This investigation drew public attention when a civic group reported the practices to the KFTC, leading to further inquiry by the Gwangju District Prosecutor's Office. In April 2023, 31 operators of these companies were charged with violations of the Fair Trade Act. Subsequently, in December, the Gwangju District Court imposed fines ranging from 3 to 12 million won on the offenders, confirming the convictions after an appeal was rejected in September 2024. The KFTC emphasized that these collusive activities unjustly inflate school uniform prices, threatening consumer welfare and financial stability, and committed to enforcing stricter regulations moving forward.

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