Korean Authority Fines 48 Furniture Manufacturers $17.4 Million for Bid-Rigging

modern kitchen interior with electric stove and appliances at home

Sejong, December 29, 2025 — The Korean authority has imposed corrective orders and administrative fines totaling KRW 25 billion (around $17.4 million) on dozens of furniture manufacturers and distributors for colluding in construction-related procurement tenders.

The Korea Fair Trade Commission said 48 furniture makers coordinated their behavior in 333 tenders launched by 67 construction companies for built-in and system furniture products. The authority found that the companies agreed in advance on winning bidders or bid prices, distorting tender outcomes over nearly a decade.

Bid-Rigging Scheme

According to the authority, the conduct covered bids for built-in furniture such as kitchen units and fitted wardrobes installed in newly built apartments and officetels, as well as system furniture used in dressing rooms and pantry spaces.

From 2013 to 2022, sales managers at the furniture companies allegedly coordinated through meetings and phone calls. In many cases, the designated winning bidder shared bid prices with so-called cover bidders, which then submitted bids based on the agreed figures to give the appearance of competition.

Enforcement Background

The authority noted that it has intensified enforcement against bid-rigging in built-in and system furniture procurements since last year. Including the latest decision, a total of 63 furniture companies have now been sanctioned in related cases, with cumulative fines reaching KRW 142.7 billion (about $109 million).

The decision includes corrective measures alongside the fines, which were described as provisional pending final calculation.

Source: https://www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=1&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=46818

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