Dispute over the canceled orders
The case involves Humasis, which Celltrion identified in a shareholder notice as its partner in a joint COVID-19 rapid diagnostic test kit business. The KFTC concluded that Humasis was not at fault when Celltrion ended a supply contract on Dec. 26, 2022, canceling outstanding orders for 37.17 million kits.
Celltrion disputes the regulator's treatment of the matter, saying it is a civil dispute between joint-business partners rather than a subcontracting-law case. A company representative said, "Additional legal explanation is necessary."
In its shareholder notice, Celltrion said a first-instance civil court had recognized supply delays by Humasis and ordered it to pay about 3.88776 billion won in late-delivery penalties for losses Celltrion suffered.
Fine covers cancellations and documentation
The KFTC announced the fine and a corrective order on Oct. 29. The cancellation of manufacturing orders accounted for 590 million won of the penalty; the remaining 40 million won concerned failures to provide legally required documents.
The documentation findings involved seven test kit orders placed from September 2021 through January 2022, according to the regulator. One order underwent changes from point-of-care (POC) kits for medical professionals to over-the-counter (OTC) kits for consumers, with some later changed back to POC products.
The KFTC said Celltrion did not issue the required documents for product-type changes in two orders and issued them late for a third.
Separate civil appeal continues
Alongside its planned administrative challenge, Celltrion said it remains involved in a civil appeal with Humasis concerning contractual responsibility and the scope of damages.
