The Korea Fair Trade Commission (KFTC) has formally begun review proceedings against seven companies that colluded in bidding for clinical specimen testing contracts at national and public hospitals. A total of 706 bids are suspected of collusion, with contract values amounting to approximately 294 billion won.

■ Seven Companies Subject to Collusion Investigation The respondents in this case are seven entities: Medical Corporation Green Cross Medical Foundation, GC Cell, Medical Corporation Samkwang Medical Foundation, Samkwang LabTree, Seoul Medical Science Institute, Seegene Medical Foundation, and Medical Corporation Lee Won Medical Foundation. These companies have been contracted to perform various specimen tests—such as blood, urine, body fluid, and tissue analysis—that are difficult for national and public hospitals to conduct in-house. These tests are used to diagnose diseases, including detecting viral infections such as hepatitis and determining cancer tissue pathology.

Hospitals have outsourced specimen testing to specialized contract laboratories when they lack diagnostic equipment or specialized personnel, or when low testing demand makes it economically unviable to perform in-house. Since the late 2010s, national and public hospitals have selected contractors through competitive bidding. The contracted companies collect specimens from hospitals, conduct tests using their own personnel and equipment, and transmit the results through electronic systems.

■ January 2012–October 2024: 706 Cases, 294 Billion Won The period under investigation spans from January 2012 to October 2024. Collusion was found to have occurred in 706 bidding processes for specimen testing contracts issued by national and public hospitals during this period, with the combined contract value reaching approximately 294 billion won.

■ KFTC Review Accelerates…Examination Report Submitted The KFTC stated that on the 7th, it submitted an examination report on this case to the Commission, and on the 11th, sent the report to the seven respondents. The report includes findings on violations uncovered during the investigation, facts regarding bid collusion and volume allocation agreements, recommendations for corrective measures and surcharges, and opinions on referring both the corporations and their executives and employees to prosecutors. The examiner determined that this case constitutes a highly serious violation under the Monopoly Regulation and Fair Trade Act.

■ Maximum Surcharge of 58.8 Billion Won Possible If the full collusion-affected amount of 294 billion won is deemed relevant revenue and the maximum imposition rate of 20% is applied, the estimated maximum surcharge could reach 58.8 billion won. However, the actual surcharge will be finalized through the Commission's deliberation process, which includes determining the relevant revenue and applying aggravating or mitigating adjustments.

■ Final Review Scheduled After Guaranteeing Right to Defense The respondents may submit written opinions or request to review and copy evidentiary materials within eight weeks from the date of receiving the examination report. The KFTC plans to convene the Commission to make a final determination on whether violations occurred and the specific level of sanctions once these defense rights procedures are completed. While the examination report contains the examiner's assessment of violations and sanction recommendations, it does not bind the KFTC Commission's final decision, which is made through deliberation by the Commission.