[Asia Economy Reporter Lee Jung-yoon] Construction companies and their key personnel who colluded by submitting rigged bids and awarded contracts in a predetermined order for U.S. military construction projects worth 43.9 billion KRW have been brought to trial.
The Seoul Eastern District Prosecutors' Office Fair Trade and Economic Crime Division (Chief Prosecutor Kim Hyung-joo) announced on the 3rd that seven construction companies and seven key personnel were indicted without detention on charges including violation of the Framework Act on the Construction Industry.
According to the prosecution, around July 2016, after seven companies obtained bidding qualifications for U.S. military construction projects through a pre-screening process, they allegedly predetermined the order of winning bids and submitted rigged prices to win contracts in that order. It is understood that over approximately two years and five months, they colluded on prices for a total of 23 construction bids worth 43.9 billion KRW and secured contracts accordingly.
Initially, only one company representative was accused, and the police forwarded the case with a 'no charges' opinion. However, the prosecution analyzed records and conducted supplementary investigations including raids, revealing that all seven companies that obtained bidding qualifications through pre-screening participated in a long-term, organized bid-rigging scheme. The prosecution plans to notify the U.S. military and the Korea Fair Trade Commission of the investigation results.
A prosecution official stated, "This is the first case of indictment for bid-rigging crimes related to U.S. military construction projects," adding, "We will continue to strictly deal with collusion crimes like this case in the future."
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