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Photo = Fair Trade Commission |
[Alpha Biz= Kim Jisun] The Korea Fair Trade Commission (KFTC) has issued corrective orders and imposed fines totaling KRW 152 million (approx. USD 110,000) on Hyosung and LS Electric for engaging in bid-rigging during a 2016 public tender for a power plant equipment replacement project.
According to the KFTC announcement on July 2, the two companies colluded during the bidding process for a project issued by the Daegu Dyeing Industrial Complex Management Corporation. The project involved the replacement of switchgear panels at the facility’s power plant.
The investigation revealed that Hyosung, having already been informally designated as the preferred bidder prior to the tender, met with officials from the industrial complex and requested LS Electric to submit a cover bid to avoid low bidding or bid cancellation. Hyosung even assisted LS Electric in preparing the necessary documentation for the consortium bid.
Both companies then submitted pre-arranged bids, resulting in Hyosung winning the contract. The KFTC began investigating the case in October 2020 following a whistleblower complaint.
The commission concluded that this coordination violated Korea’s Fair Trade Act and undermined the principles of fair competition in public procurement. Additional sanctions may follow depending on further developments.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
