FTC files a complaint with prosecution against GC Medical Science
FTC files a complaint with prosecution against GC Medical Science
  • Jung Se-jin
  • 승인 2019.07.22 11:49
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Due to collusion of blood bags used for blood donation

A Fair Trade Commission (FTC) has found in its investigation that a collusion took place in the process of supplying blood bags used for blood donations to blood institutes in each region. The FTC has decided to file a complaint with the prosecution against GC Medical Science, which secured 70 percent of its supplies through collusion. 

The FTC said on July 17 that it will impose a fine of 7.69 billion won on GC Medical Science and Tae Chang, which allocated the pre-scheduled amount in a bid for the unit price of blood bags ordered by the Korean Red Cross. It also decided to file a complaint with the prosecution against GC Medical Science and one of its employees.

In the three joint purchase unit price bids conducted by the Korean Red Cross in 2011, 2013 and 2015, the two companies allocated the volume in advance at the ratio of 7:3 for GC Medical Science and Tae Chang and set the price for the bidding. At that time, only two companies were participating in the blood bag market. 

Under a preliminary agreement, the two companies divided the number of blood institutes nationwide into nine and six in 2011 and accepted the respective bids. As the amount of supplies secured by GC Medical Science fell short of 70%, the company readjusted the number with 10 places for GC Medial Science and five ones for Tae Chang in 2013 and 2015.

"These companies made unfair profits by using the courage needed to donate blood voluntarily without paying any price," an FTC official said, adding, "It is a malicious collusion that stole the pockets of desperate patients who need blood and the budget for health insurance."


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