-Rigging Case Involving Specimen Testing Services-
August 11, 2026
The Secretariat of the Korea Fair Trade Commission (KFTC, Chairperson Biung-Ghi Ju) has submitted to the Commission an examiner’s report concerning a case involving bid rigging in specimen testing service contracts commissioned by national and public hospitals. The report sets forth the facts of the conduct investigated by the examiner, the examiner’s assessment of its illegality, and proposed corrective measures. Accordingly, deliberation proceedings have commenced, and the report has been served on seven specimen testing service providers and supporting service providers involved in the case.
<Market Overview>
Specimen testing refers to the detection or measurement of specific substances in various specimens, such as blood, urine, bodily fluids, and tissues, or the interpretation of morphological abnormalities, in order to determine whether a person has a disease or infection. Examples include tests for viruses such as hepatitis and tissue examinations for various types of cancer.
Hospitals outsource specimen tests that cannot be performed in-house to specialized institutions. Since the late 2010s, national and public hospitals have selected service providers through competitive bidding.
<Facts of the Conduct>
The examiner determined that the respondents had engaged in bid rigging and agreements on the allocation of contract volumes in 706 specimen testing service bids and other procurement processes commissioned by national and public hospitals and other entities over an extended period of time.
The examiner estimates that the total value of the contracts affected by the alleged collusive conduct amounts to approximately KRW 294 billion, based on contract value.
<Examiner’s Proposed Measures>
The examiner determined that the conduct constitutes a serious violation of Article 40(1), Subparagraphs 8 and 3 of the Monopoly Regulation and Fair Trade Act (Fair Trade Act), and proposed corrective measures, including an order to cease the prohibited conduct, the imposition of administrative fines, and referral of the companies and their executives and employees for criminal prosecution.
The Commission will make a final determination on whether the conduct violated the law following its deliberation and, if a violation is confirmed, will determine the specific level of sanctions.
<Next Steps>
The respondents will be fully guaranteed their rights of defense, including the right to submit written opinions and apply for inspection and copying of evidence within eight weeks from the date they receive the examiner’s report.
The KFTC plans to convene the Commission as soon as practicable after the procedures for ensuring the respondents’ rights of defense have been completed and make a final determination on the case.
etc/English