Fair Trade Commission Cracks Down on School Uniform Collusion Ahead of New Semester... Holds Roundtable with Top 5 Manufacturers

Enhanced Monitoring of Distributors and Simultaneous Guidance on Legal Compliance
Sanctions Initiated Against Bid-Rigging by School Uniform Distributors in Ulsan, Yongin, and Yeongcheon

The Fair Trade Commission has summoned major school uniform manufacturers and communicated its strict policy stance to eradicate chronic bid-rigging ahead of the new school year. In addition to initiating strong sanctions against regional distributors caught colluding during the first half of the year, a nationwide real-time monitoring network will also be put in place.

Parents are selecting school uniforms at the Nanum School Uniform Store in Songpa-gu, Seoul. Photo by Yonhap News.

On August 10, the Fair Trade Commission announced that it held an 'Anti-Collusion School Uniform Roundtable' at the Korea Consumer Agency's Seoul-Gangwon office. The meeting was attended by representatives from the nation's five largest school uniform manufacturers, including Hyungji Elite Co., Ltd., IVY Club Co., Ltd., The Engine Co., Ltd. (School Looks), Smart F&D Co., Ltd., and Hojeon Retail Co., Ltd. (Centen).

This roundtable was organized to raise awareness across the industry about collusion as the peak season for school uniform bidding approaches in the second half of the year. Following a report to a Cabinet meeting in May, the authorities shared updates on the ongoing nationwide monitoring for signs of bid-rigging among school uniform distributors. To prevent distributors from engaging in habitual collusion due to a lack of awareness of fair trade laws, the government is working with city and provincial education offices across the country to provide guidance on compliance with the Fair Trade Law.

The five manufacturers present at the meeting proposed voluntary compliance measures, including expanding internal training to prevent bid-rigging, distributing compliance business guidelines for distributors, and strengthening their own monitoring.

Oh Haengrok, Director General of Cartel Investigation at the Fair Trade Commission, stated, “Eradicating chronic collusion that has repeatedly resurfaced in the school uniform market requires proactive efforts from manufacturers. We urge all parties to actively cooperate to establish a healthy competitive environment.”

Meanwhile, in the first half of this year, the Fair Trade Commission completed the delivery of its review report (equivalent to a prosecutorial indictment) in June regarding bid-rigging cases involving school uniform distributors in three regions: Ulsan, Giheung and Cheoin districts in Yongin, Gyeonggi Province, and Yeongcheon, North Gyeongsang Province. The Commission plans to soon convene a full committee and subcommittees to finalize corrective orders, fines, and other sanctions.

This content was produced with the assistance of AI translation services.