The Fair Trade Commission (FTC), chaired by Han Ki-jung, has imposed corrective orders and a provisional fine totaling 152 million KRW on two companies involved in unfair collusion during a 2016 public bid for the replacement of 440V distribution panel boards at a power plant.
The companies, Hyosung and LS Electric, agreed in advance on the winning bidder and bid prices for the project issued by the Daegu Dyeing Industrial Complex Management Corporation. Hyosung secured the contract by coordinating with LS Electric to submit a token bid, preventing low-price bids or bid failures. Hyosung also supported LS Electric in forming a consortium and preparing bid documents.
Following the discovery, criminal proceedings are underway against eight individuals, including employees of the ordering agency and the two companies involved.
The FTC emphasized that this action serves as a warning against collusion involving ordering agency staff and contractors that undermines fair competition. The commission pledged to strengthen monitoring and impose strict penalties on collusion in the electrical construction sector to protect industry competitiveness.
