This article was posted on the ChosunBiz RM Report site on April 4, 2025, at 4:02 p.m.
The Fair Trade Commission has confirmed that it has launched an on-site investigation targeting electric bus manufacturers and sellers in connection with allegations that rebates were provided during the electric bus supply process.
According to industry sources on the 7th, the Fair Trade Commission sent researchers to conduct on-site investigations of electric bus manufacturers WooJIN and PLINE MOTORS that day. Earlier last week, on-site investigations were also carried out against GS Global and PLINE MOTORS, which import and sell electric buses from China.
The Fair Trade Commission is looking into whether there have been any acts of ‘unfair customer inducement’ under the Fair Trade Act throughout the electric bus supply process. This investigation follows allegations that some companies provided rebates to transportation firms and induced the purchase of specific vehicles. The Fair Trade Commission believes such actions may fall under the ‘inducement of customers through the provision of benefits’ prohibited by Article 45 of the Fair Trade Act.
The Fair Trade Commission is reportedly focusing on indications that companies provided monetary benefits to transportation firms through methods such as providing lease vehicles, covering loan interest, and supporting office interior expenses to induce them to purchase specific vehicles. In particular, there are allegations that importers exploited the government's subsidy policy to effectively provide discounts by returning the minimum self-burden costs to the transportation firms. Industry sources explain that this was done by processing the payment for the vehicles as fully paid on paper while actually returning part of the amount, thereby reducing the effective burden.
Earlier, various forms of rebate allegations had been raised against transportation firms in some areas, including Seoul, regarding the provision of luxury imported car leases and preferential contracts with subsidiary companies under family names. According to the Ministry of Land, Infrastructure and Transport and the Korea Automobile Mobility Industry Association (KAMA), electric buses from China recorded a market share of 54% in 2023, surpassing domestic models.
A Fair Trade Commission official noted, “We cannot confirm ongoing cases,” adding, “If illegal acts are confirmed in the investigation results, we plan to take strict measures in accordance with relevant laws.”