Hyosung, HD Hyundai Electric and others to stand trial over KEPCO bid-rigging worth around 670 billion won

[Financial News] A number of companies and their executives and employees have been indicted for engaging in bid-rigging worth around 670 billion won in tenders for equipment projects put out by Korea Electric Power Corporation (KEPCO).
The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office, led by chief prosecutor Na Hee-seok, announced on the 20th that it had indicted eight companies and a total of 11 current and former executives and employees on charges of violating the Fair Trade Act. The companies include Hyosung Heavy Industries, HD Hyundai Electric, LS ELECTRIC and ILJIN Electric.
According to prosecutors, from March 2015 to September 2022, over a period of seven years and six months, the defendants are accused of unlawfully restricting competition in 145 tenders for gas-insulated switchgear ordered by KEPCO by prearranging the winning bidder and bid prices in advance.
Prosecutors believe that these companies, which together held about 90% of the gas-insulated switchgear market, agreed in advance on which company would win each contract and shared bid prices so that the contracts would be awarded at high prices. The value of the collusive conduct is estimated at 677.6 billion won, and the resulting unjust gains are believed to be at least 160 billion won. Gas-insulated switchgear is installed at power plants and substations to quickly cut off excessive current and protect power facilities.
A prosecution official pointed out, "The abnormally high bid-winning rates of each company pushed up the contract amounts, and this damage ultimately translates into higher power generation costs for KEPCO and, in turn, higher electricity bills, which end up as additional expenses for ordinary citizens."

kyu0705@fnnews.com Reporter Kim Dong-gyu Reporter