Fair Trade Commission "Shinkwang Technology and Seongjin Tech Colluded in Firefighting Special Vehicle Bidding... Corrective Order and Fine"

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 1st that it has decided to impose corrective orders (future conduct prohibition orders) and a total fine of 1.12 billion KRW on two special vehicle manufacturers and sellers, Shinkwang Technology Co., Ltd. and Seongjin Tech Co., Ltd., for colluding on the winning bidders and bid prices in the manufacturing and purchasing bids of firefighting special vehicles conducted by public institutions.

According to the Fair Trade Commission, the two companies, Shinkwang Technology and Seongjin Tech, agreed in advance on the winning bidders and bid prices for each bidding vehicle and each demand institution in a total of 74 bids for manufacturing and purchasing firefighting special vehicles conducted by local fire headquarters, education offices, and other public institutions from March 2015 to May 2019 (total bid amount of 38.1 billion KRW), and executed these agreements.

As a result of executing the agreement, Shinkwang Technology won 32 bids (total contract amount of 15.252 billion KRW) and Seongjin Tech won 31 bids (total contract amount of 13.882 billion KRW) out of the total 74 bids in this case.

A Fair Trade Commission official stated, "This action is significant in that it detected and corrected bid rigging among businesses with high market share and technological superiority in the firefighting special vehicle bidding market," and added, "The Fair Trade Commission plans to actively respond by strengthening monitoring of bid rigging in the public sector, which causes waste of public taxes and national finances."