In 2019, the Prosecutors’ Office launched a criminal investigation into the allegation that several pharmaceutical companies colluded on public procurement bids for vaccines intended for the National Immunization Program (“NIP”). The investigation resulted in charges against the implicated companies and individuals. In 2021, while these criminal proceedings were ongoing, the Korea Fair Trade Commission (“KFTC”) launched its own investigation into alleged bid-rigging, examining more than 30 pharmaceutical companies and vaccine wholesalers, including those already identified in the criminal case. Kim & Chang represented a multinational pharmaceutical company in both the criminal investigation and the KFTC proceedings.

Our firm’s dedicated efforts achieved a favorable outcome for the client. On August 30, 2023, the KFTC imposed only a minimal penalty on our client relative to other respondents. In the related criminal proceedings, we successfully overturned the trial court’s guilty verdict. On July 29, 2024, the Seoul High Court (appellate court) acquitted our client, agreeing with our argument that there was insufficient evidence to establish both the requisite anti-competitive effects and criminal intent. On December 4, 2025, the Supreme Court affirmed the acquittal, rendering the decision final.

This case stood out for its complexity and scale, involving serious allegations of bid-rigging in the unique vaccine distribution market and public tender system involving more than 30 parties. It required a defense strategy grounded in a detailed understanding of the facts and intricacies of the market. For more than six years, our firm leveraged expertise from various teams, including experts in competition law, criminal law, pharmaceutical regulations and the vaccine industry, to ensure a coordinated and organic defense strategy in parallel criminal and KFTC investigations. We led the development of the defense strategy and legal logic, which were subsequently relied upon by other defendants and respondents.

Notably, unlike the other companies, our client made the strategic choice not to challenge the KFTC’s decision through administrative litigation, and instead focused on the criminal proceedings. Although the Supreme Court upheld the KFTC’s sanctions for other pharmaceutical companies in their respective administrative cases, the final acquittal of our client demonstrates the effectiveness of our firm’s strategy and defense. This case establishes an important precedent for advising and defending future matters involving concurrent criminal and regulatory investigations, as the separate proceedings involved differing standards of proof and adjudication that apply to criminal penalties and administrative sanctions.