Hello, this is Attorney Young-kyung Lee of Cheongchul Law Firm.

On September 17, 2026, the Korea Fair Trade Commission (KFTC) announced that it had submitted to the Commission an examiner's report setting out the facts, illegality, and proposed measures identified by the case examiner in a bid-rigging case involving tenders for digital textbook tablet computers issued by education offices and other public bodies. The report was served on four tablet computer manufacturers and sellers (hereinafter 'Companies A to D') on September 18, 2026, formally opening the review proceedings.

According to the examiner, the collusion affected tenders worth approximately KRW 65 billion and more than 200,000 tablet computers. Although the investigation is complete and the examiner's report has been submitted, the Commission has not yet reached a final decision through its deliberation. This column is based on the KFTC press release dated September 17, 2026, and the individual companies are anonymized as Companies A to D.

Cheongchul Law Firm is composed of attorneys specializing in the Fair Trade Act, with experience both representing the KFTC in having the legality of its dispositions upheld in court and representing numerous companies in investigations, hearings, and litigation over bid rigging and other unfair collaborative acts. If you have any questions about bid rigging, including this case, please feel free to contact us.

Case at a Glance – Examiner's Report Stage (Commission Review Opened)

The examiner concluded that Companies A to D, four tablet computer manufacturers and sellers, engaged in organized collusion in tenders for digital textbook tablet computers issued by education offices and other public bodies, and proposed corrective measures, administrative surcharges, and criminal referral of the corporations and the individuals involved (current and former executives and employees) for violating Monopoly Regulation and Fair Trade Act Article 40(1)8 (공정거래법 제40조 제1항 제8호) on bid rigging. However, the examiner's proposed measures do not bind the Commission's final decision, and the respondents may fully exercise their right of defense within six weeks of receiving the examiner's report by submitting written opinions and requesting access to and copies of evidentiary materials. The KFTC plans to convene the Commission and reach a final decision once the defense procedures are complete.

● Current stage: Examiner's report submitted (submitted September 17, 2026 / served on respondents September 18, 2026)

● Scale of collusion identified by the examiner: Tenders affected worth approximately KRW 65 billion; more than 200,000 tablet computers supplied

● Subject: Tenders for digital textbook tablet computers issued by education offices and other public bodies

● Provision applied by the examiner: Monopoly Regulation and Fair Trade Act Article 40(1)8 (공정거래법 제40조 제1항 제8호) (bid rigging)

● Examiner's proposed measures: Corrective measures (including cease-and-desist orders) + administrative surcharges + criminal referral of the corporations and current and former executives and employees

● Respondents' defense period: Written opinions within six weeks of receiving the examiner's report

● Commission's final decision: Hearing to be held after the opinion-submission procedure ends (not yet determined)

1. Background – Characteristics of the Digital Textbook Tablet Computer Supply Market

What Are Digital Textbooks and Tablet Computers?

A digital textbook is an electronic version of a textbook that replaces or supplements the printed textbook, digitizing the curriculum content and allowing it to be used together with various learning materials such as video and audio. Digital textbook tablet computers are electronic devices distributed to schools through education offices and other bodies so that elementary, middle, and high school students can view digital textbooks and use online learning-support software in class. When remote learning became widespread during the COVID-19 pandemic in 2020, the need for education through digital media grew significantly, and full-scale distribution and adoption began at that time.

Bulk Purchasing by Education Offices and the Large-Scale Tender Structure

Unlike products that individual consumers purchase on their own, tablet computers distributed to schools for viewing digital textbooks are supplied through a system in which public institutions such as education offices or schools purchase the volume needed for education programs in bulk and lend the devices to students. A single tender may cover thousands to tens of thousands of tablet computers, and suppliers are selected through open bidding and similar procedures. Depending on the project, the scope often includes not only device supply but also initial setup, software installation, peripheral equipment, and maintenance and repair, so a successful bid is often linked to long-term ancillary contracts.

2. Facts Identified by the Examiner and the Provision Applied

Scale of Collusion Identified by the Examiner

The examiner concluded that Companies A to D, four tablet computer manufacturers and sellers, engaged in organized collusion in tenders for digital textbook tablet computers issued by education offices and other public bodies, and found that the tenders affected by the collusion were worth approximately KRW 65 billion and that more than 200,000 tablet computers were supplied through those tenders. However, these findings of fact and calculations of scale are still the examiner's determinations and will be finally confirmed and adjusted through the Commission's deliberation.

Provision Applied – Monopoly Regulation and Fair Trade Act Article 40(1)8 (공정거래법 제40조 제1항 제8호)

The examiner concluded that the above conduct constitutes a very serious violation of Monopoly Regulation and Fair Trade Act Article 40(1)8 (공정거래법 제40조 제1항 제8호) on bid rigging.

Measures Proposed by the Examiner

The examiner proposed to the Commission corrective measures including cease-and-desist orders, administrative surcharges, and criminal referral of the corporations and the individuals involved (current and former executives and employees). The Commission will now deliberate and reach a final decision on whether the law was violated, and if a violation is confirmed, it will also determine the specific level of sanctions.

3. Review Procedure After Receiving the Examiner's Report and the Respondents' Right of Defense – Note the Six-Week Deadline

Under the KFTC's Rules on Case Handling Procedures, a respondent who has received an examiner's report may exercise the following rights of defense.

4. Practical Response Checklist for Corporate Staff of Respondents That Have Received an Examiner's Report

Below is a summary of the items that in-house legal, sales, and management staff of a respondent company (corporation) that has received an examiner's report should immediately review and act on.

5. Frequently Asked Questions (FAQ) from Corporate Staff in the Tablet and Electronics Industry Under Cartel Investigation

Q1. A bid-rigging hearing is under way regarding an education office tender. Can we continue to participate in other education office tenders?

At the hearing stage, measures such as restrictions on bidding eligibility have not yet been finalized. However, if the Commission's deliberation confirms a violation, there is a risk that it will lead to a disposition restricting bidding eligibility as an improper business operator under the State Contracts Act and the Local Contracts Act. It is important to develop an investigation response strategy that takes this parallel risk into account.

Q2. The examiner's proposed measures include 'criminal referral of the corporation and current and former executives and employees.' Is there a possibility of criminal punishment?

Yes, there is. Bid rigging is subject to criminal punishment under the Fair Trade Act, and if the Commission accepts the examiner's opinion and resolves to file a criminal referral, the matter may proceed to a prosecutorial investigation. In that case, not only the corporation but also the individual executives and employees involved (including former ones) are exposed to criminal proceedings, so at the examiner's report stage the company should carefully review any conflicts of interest between the corporation and its executives and employees and decide whether to retain separate defense counsel.

6. Cheongchul Law Firm's Advisory Services for Cartel Investigations, Examiner's Report Responses, Hearings, and Litigation

Cheongchul Law Firm is composed of attorneys specializing in fair trade and cartel matters, with extensive experience in advisory, investigation, hearing, and litigation work representing both companies and the KFTC across the laws under the KFTC's jurisdiction, including the Fair Trade Act, and public procurement laws such as the State Contracts Act and the Local Contracts Act. In particular, we provide the following services in exercising the right of defense after receipt of a cartel examiner's report and responding to Commission hearings.

● Detailed analysis of the examiner's report and preparation of written rebuttal opinions

● Representation in oral statements at preliminary hearings and plenary or subcommittee hearings

● Management of criminal referral risk for the corporation and its executives and employees, and response to criminal proceedings (prosecutorial investigation and indictment)

● Representation in administrative litigation to revoke corrective orders, surcharges, criminal referrals, and other dispositions

● Response to parallel public procurement risks such as restrictions on bidding eligibility as an improper business operator

In this digital textbook tablet computer bid-rigging case, the examiner identified a collusion impact of approximately KRW 65 billion and more than 200,000 units supplied, and because the deadline for submitting written opinions is a short six weeks, a prompt response is required as soon as the examiner's report is submitted. Corporate staff of respondents who need assistance with investigation notices, receipt of an examiner's report, hearing responses, leniency review, management of criminal referral risk for executives and employees, or parallel responses to improper business operator sanctions are welcome to contact Cheongchul Law Firm.