12 Companies Colluding in Semiconductor Control System Bidding Fined 10.4 Billion KRW by Fair Trade Commission

Cooperative companies that colluded in bids related to control systems for semiconductor processes, commissioned by Samsung SDS, will face sanctions from the Fair Trade Commission.

The Fair Trade Commission decided to impose corrective orders and a total fine of 10.459 billion KRW on 12 businesses engaged in manufacturing machinery for semiconductor production.

The 12 companies are PSENG, Duta IT, Mecha Technology, Einstech, Changgong FA, Changseong Ace Industry, Korea Data Corporation, Tasco, Power Telecom, Hantech, Hanwha Convergence, and Hyupsung Gijeon.

According to the Fair Trade Commission, Samsung SDS changed its procurement method for control and monitoring systems from a de facto sole-source contract to a competitive bidding process in 2015 to reduce costs. Companies such as PSENG took this opportunity to start collusion to prevent low-price bids and block new competitors from entering the market.

From 2015 to 2023, these companies colluded in 334 bids commissioned by Samsung SDS over nine years by pre-agreeing on the winning bidder and having the others act as cover bidders.

The Fair Trade Commission determined that this collusion weakened the competitiveness of the semiconductor industry and caused consumer harm due to price increases, leading to the decision to impose sanctions.

The Fair Trade Commission stated, "We will strengthen monitoring of collusion in the intermediate goods sector and respond strictly when violations of the law are detected."