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A view of the headquarters of Korea Electric Power Corporation in Bitgaram-dong, Naju, South Jeolla Province. (Photo = Yonhap News) |
[Alpha Biz= Paul Lee] Hyosung Heavy Industries and several major electrical equipment makers have denied allegations of collusion in a KRW 670 billion procurement project ordered by Korea Electric Power Corporation (KEPCO).
At a pretrial hearing held on March 27 at the Seoul Central District Court, the defendants—including HD Hyundai Electric, LS Electric, and Iljin Electric—collectively rejected the prosecution’s charges under the Monopoly Regulation and Fair Trade Act.
During the hearing, the court reviewed submitted briefs and organized evidence presented by both sides.
Hyosung Heavy Industries reiterated its position from the first hearing, arguing that the indictment itself is flawed. Its legal counsel stated that the prosecution failed to specify key elements of the alleged agreement, including when and where it was formed, while portraying separate bidding arrangements as if they were part of a single, overarching collusive scheme.
The company also claimed that much of the prosecution’s evidence is either duplicative or irrelevant.
In response, the court instructed prosecutors to reorganize the evidence, clearly distinguishing between allegations of bid-rigging and embezzlement, and to provide a more detailed classification of materials.
Iljin Electric likewise denied the charges, arguing that certain bids cited in the indictment differ in factual circumstances. It also claimed that some evidence was unlawfully obtained, alleging violations of attorney-client privilege during the seizure process.
Both HD Hyundai Electric and LS Electric stated that they broadly deny the allegations.
The court scheduled the next hearing for May 6, when witness examinations requested by the prosecution will begin.
The companies are accused of colluding in 145 tenders for gas-insulated switchgear (GIS) projects worth a combined KRW 677 billion, issued by KEPCO between March 2015 and September 2022. Prosecutors allege that the firms pre-arranged winning bidders and bid prices, thereby unfairly restricting competition.
Authorities also found that the four companies collectively accounted for approximately 90% of the relevant market between 2020 and 2024, allegedly leading the collusion and reaping the largest economic gains.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
