April 27, 2024

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[THE INVESTOR] Korea’s corporate watchdog slapped a 6.2 billion won (US$5.80 million) fine on German industrial giant Siemens’ Korean affiliates for abusing their dominance in the local aftermarket for medical equipment, such as CT and MRI.

According to the Fair Trade Commission, Siemens affiliates changed contract terms for their software programs, used for the maintenance of their CT and MRI equipment, depending on whether a local hospital employed a third party maintenance service provider or Siemens‘ own maintenance provider.

As of 2016, over 90 percent of Siemens’s CT and MRI equipment was maintained by the company’s own service affiliates, FTC said.

Siemens, GE and other foreign firms dominate the CT and MRI market in Korea, with Siemens having maintained its No. 1 position in the medical equipment sector for four straight years.

By Alex Lee and newswires (alexlee@heraldcorp.com)