Sejong, February 12, 2026 — The South Korean Fair Trade Commission has imposed fines totaling KRW 5.26 billion (approximately $3.6 million) on 10 companies for bid-rigging in 24 tenders for household waste collection and transportation services issued by Goyang City in 2020 and 2022.
In addition to the fines, the KFTC ordered corrective measures against the companies for agreeing in advance on the winning bidders, cover bidders, and bid prices in the competitive procurement processes.
The case concerns tenders for outsourced municipal waste collection and transportation services covering multiple districts in Goyang City. Until 2020, the city had selected service providers through negotiated contracts. However, following an audit report released in October 2019, the city shifted to an open competitive bidding system beginning with the May 2020 tender notice. At the same time, the service areas were reorganized from 10 to 12 districts.
The 2020 contracts covered a two-year service period from July 1, 2020, to June 30, 2022.
According to the KFTC, the companies coordinated their bids to maintain their existing service territories or secure nearby districts. The authority found that the firms sought to avoid being assigned to distant areas because their personnel, equipment and facilities were concentrated in their previous zones. Moving outside those areas risked increased civil complaints and reduced operational efficiency due to higher logistics costs and lower equipment utilization.
To minimize such risks, the companies agreed in advance on the designated winner for each district and determined which firms would submit cover bids, along with the specific bid amounts to be submitted. This arrangement allowed the participants to preserve their existing geographic positions despite the introduction of competitive tendering.
The authority determined that the conduct constituted an illegal bid-rigging agreement in violation of Korea’s competition law. By undermining the competitive bidding process, the arrangement restricted competition in a public service market directly linked to municipal operations and taxpayer-funded contracts.
The decision forms part of the KFTC’s ongoing enforcement efforts against collusion in public procurement markets, particularly in essential public services. The authority did not indicate whether any of the companies will face criminal referral in connection with the case.
