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Photo: LS ELECTRIC |
[Alpha Biz= Kim Jisun] Two current and former executives from LS Electric and Iljin Electric have been indicted and taken into custody over allegations of collusion in equipment bids worth 670 billion won ($490 million) issued by Korea Electric Power Corp. (KEPCO).
According to legal sources on Thursday, the Seoul Central District Prosecutors’ Office’s Fair Trade Investigation Division filed charges against the two executives for allegedly rigging bids for gas-insulated switchgear (GIS) projects between 2015 and 2022.
Prosecutors say the suspects agreed in advance to allocate contract volumes and took turns winning KEPCO tenders. GIS equipment is used in power plants and substations to protect facilities by rapidly cutting excessive electrical currents.
Earlier, prosecutors sought detention warrants for five current and former executives from power equipment makers, including LS Electric and Iljin Electric. The court approved warrants for only the two, while releasing the remaining three, citing the need to protect their right to defense and the existence of disputed legal issues. Prosecutors said further investigations are ongoing.
The case stems from a complaint filed late last year by South Korea’s Fair Trade Commission against six companies — Hyosung Heavy Industries, LS Electric, HD Hyundai Electric, Iljin Electric, Jeryong Electric, and the Korea Electrical Manufacturers Cooperative — over alleged bid collusion.
Prosecutors believe the scheme inflated bid prices, causing financial losses to KEPCO and contributing to higher electricity costs. Authorities conducted raids on the companies’ offices in October last year.
On Wednesday, prosecutors also sought detention warrants for an executive at Hyosung Heavy Industries and a manager at HD Hyundai Electric. The Seoul Central District Court is scheduled to hold hearings on Jan. 12.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
