SEOUL, March 18, 2026 — South Korea’s competition authority has fined 27 school uniform suppliers for colluding in public tenders, in a case highlighting long-running bid-rigging practices that inflated costs for students and families.
The Korea Fair Trade Commission said the companies coordinated bids for middle and high school uniform contracts in Gwangju between 2021 and 2023, agreeing in advance on winners and prices.
The regulator imposed corrective orders and total fines of 321 million won, finding the companies had engaged in a systematic scheme to manipulate competitive tenders.
According to the authority, the collusion involved designating a pre-selected winning bidder for each tender, while other participants submitted higher bids or incomplete documents to give the appearance of competition.
The scheme affected 260 school uniform tenders, with colluding firms successfully securing contracts as planned in 226 cases. On average, each company participated in more than 16 rigged tenders and won around six contracts through the arrangement.
Officials said the cartel emerged as suppliers sought to avoid aggressive price competition under the school-led uniform procurement system, which awards contracts to the lowest bidder meeting quality requirements.
While the process is designed to lower prices, the authority found the collusion had the opposite effect, preventing price reductions and directly increasing the cost of uniforms for students.
The case forms part of a broader crackdown on bid rigging in essential consumer markets. Since 2010, the authority has sanctioned dozens of similar cases involving school uniform tenders nationwide.
The regulator said it would continue to strengthen enforcement against cartels that burden households, while also pursuing reforms to increase penalties and deter repeat violations.
