Why is South Korea’s FTC fining Celltrion over COVID-19 test-kit orders?

The FTC said Celltrion canceled orders for 37.17 million undelivered kits when it ended a supply contract, although the subcontractor was not at fault. It also found that Celltrion failed to provide required documents on time when changing product types in orders.

What documentation violations did the FTC cite in Celltrion’s subcontracting case?

Celltrion failed to issue legally required documents when changing the product types in two orders and delayed issuing documents for another. The FTC said the documents must be provided before subcontractors begin work on initial or revised orders.

How much of Celltrion’s fine is for order cancellations versus paperwork violations?

Of the 630 million-won total, 590 million won is for unfairly canceling orders and 40 million won is for failing to meet documentation requirements. The FTC will also issue a corrective order against the company.

Watchdog to fine Celltrion $469,000 over unfair subcontracting practices

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Summary

South Korea’s antitrust watchdog said Thursday it will fine Celltrion 630 million won and issue a corrective order over unfair subcontracting practices involving COVID-19 test kits. The Fair Trade Commission said Celltrion canceled orders for 37.17 million undelivered kits when it terminated a supply contract on Dec. 26, 2022, despite no fault by the subcontractor. The watchdog also cited failures to provide required documents on time when orders were changed.

Key Facts

The fine comprises 590 million won for unfair order cancellations and 40 million won for documentation violations.
Celltrion placed seven COVID-19 test-kit orders with a local subcontractor between September 2021 and January 2022.
The FTC said Celltrion changed some point-of-care kits for medical professionals to over-the-counter kits for general consumers, then switched some back to point-of-care products.
The Fair Transactions in Subcontracting Act requires prime contractors to provide written documents before subcontractors begin work on initial or revised orders.

By Yonhap

Published Oct 29, 2026 12:40 pm KST

The logo of Celltrion/ Courtesy of Celltrion

South Korea's antitrust watchdog said Thursday it will impose a 630 million-won ($469,000) fine on Celltrion Inc., a biotechnology firm, for unfairly canceling orders and failing to provide a subcontractor with required documents on time.

The Fair Trade Commission (FTC) said it will also issue a corrective order against the company over violations related to COVID-19 test kits with a local subcontractor.

Of the total fine, 590 million won will be imposed for unfair order cancellations and 40 million won for failing to meet documentation requirements.

According to the FTC, Celltrion placed seven orders for COVID-19 test kits between September 2021 and January 2022.

The company failed to issue legally required documents when changing the types of products in two orders and delayed issuing documents for another.

In one case, Celltrion changed some of the point-of-care (POC) test kits for medical professionals to over-the-counter (OTC) kits for general consumers, before switching some of those kits back to POC products.

The FTC said the Fair Transactions in Subcontracting Act requires prime contractors to provide the required written documents before subcontractors begin work on initial or revised orders.

Celltrion also unilaterally canceled orders for 37.17 million undelivered test kits when it terminated a supply contract on Dec. 26, 2022, despite no fault by the subcontractor, the watchdog said.

The law prohibits prime contractors from arbitrarily canceling or altering manufacturing orders unless the subcontractor is at fault.

The FTC said it will continue to crack down on unfair subcontracting practices.

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