Fair Trade Commission orders corrective measures and fines for bid rigging on 'earthquake monitoring equipment' by Heesong Geotech and one other company

[Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission announced on the 25th that it has decided to impose corrective orders and a total fine of 38 million KRW on two companies, Same Korea and Heesong Geotech, for collusion in the 'Seismic Observation Equipment Purchase and Maintenance Bidding' conducted by Korea Hydro & Nuclear Power and Korea National Oil Corporation. Among them, Heesong Geotech will be reported to the prosecution.

According to the Fair Trade Commission, Same Korea and Heesong Geotech agreed in advance on the successful bidder, dummy bidders, and bid prices in the seismic observation equipment purchase bidding conducted by KHNP in May 2014 and the seismic observation equipment maintenance service bidding conducted by KNOC from January 2016 to January 2018, and executed this agreement.

In each bidding, Same Korea agreed to be the successful bidder, while Heesong Geotech participated as a dummy bidder with a bid price that could not win the contract.

Heesong Geotech and Same Korea participated in four bids as originally agreed, and Same Korea won three bids (with a total contract amount of approximately 520 million KRW including VAT).

A Fair Trade Commission official stated, "This action is significant in that it detected and sanctioned bid-rigging secretly conducted by effectively a single business operator in fields related to public life and safety," adding, "The Fair Trade Commission plans to actively respond to bid-rigging in the public sector going forward."