Firms suspected of coordinating bids on LH-ordered projects

Southern inland railway project also under scrutiny

The Korea Fair Trade Commission has launched on-site raids on six construction companies suspected of colluding in public construction bids.

According to industry sources Wednesday, the Fair Trade Commission dispatched investigators to Gyeryong Construction, Kolon Global, Isu Construction, KR Industry, Chinhung International and Kumho Engineering & Construction to seize relevant documents.

The Korea Fair Trade Commission at Government Complex Sejong in Eojin-dong, Sejong [Newsis]
The Korea Fair Trade Commission at Government Complex Sejong in Eojin-dong, Sejong [Newsis]

The probe targets construction projects ordered by the Korea Land and Housing Corporation through its comprehensive evaluation award system. The Fair Trade Commission is examining whether participating firms pre-arranged bid prices and designated winners, or submitted token bids to help a specific company secure contracts, sources said.

The comprehensive evaluation award system was introduced to address quality concerns arising from lowest-price bidding. Contract awards are determined not only by bid price but also by a company's construction capacity and corporate social responsibility record.

The Fair Trade Commission is also investigating whether bid-rigging occurred in the Southern Inland Railway construction project ordered by Korea National Railway.

The investigation marks the first case handled by the Fair Trade Commission's Construction and Energy Cartel Investigation Division, which launched earlier this month. A Fair Trade Commission official declined to comment, saying the agency "cannot confirm details related to individual cases."


y2k@heraldcorp.com