Sejong, October 27, 2025 — The Korea Fair Trade Commission (KFTC) has ordered EO System Co. to remove restrictive conditions imposed on supplier Shinbo Co. to withhold critical components from rivals, after finding that the conduct restricted competition in the market for artillery sighting systems.
EO System induced its supplier Shinbo Co., the exclusive domestic producer of counter assemblies used in panoramic telescopes, to refuse sales to competitor Wookyung Optical during a 2022 tender by Hanwha Aerospace for K-9 self-propelled howitzer sighting devices. The move allowed EO System to bid alone and secure the supply contract.
The KFTC found that even though the refusal stemmed from a prior 2013 contract requiring Shinbo to obtain EOSYSTEM’s written consent before supplying or outsourcing production, the arrangement effectively prevented market competition. The authority concluded the conduct violated Article 45(1)(1) of the Monopoly Regulation and Fair Trade Act.
The agency imposed a corrective order, including cessation of the conduct, a prohibition on recurrence, and notification of the decision to Shinbo and relevant customers of the component.
