Public Procurement Service Detects 8 Companies for Unfair Procurement Practices, Recovers Illicit Profits

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Eight companies were caught for unfair procurement practices. The unjust profits obtained by these companies are expected to be recovered.

The Public Procurement Service announced on the 16th that it had identified eight companies that obtained unjust profits of 380 million KRW through unfair procurement practices such as contract specification violations, preferential price maintenance obligation violations, and direct production violations.

The identified companies include three contractors who delivered ready-mixed concrete, water tanks, and special roofing materials products differently from contract specifications (unjust profits of 148 million KRW), and four contractors of health masks, stone blocks, and hand dryers who violated the preferential price maintenance obligation by supplying at prices lower than the procurement contract price to the civilian market (unjust profits of 231 million KRW).

Additionally, one contractor of children's desks who violated direct production (unjust profits of 600,000 KRW) was also included among those caught.

The Public Procurement Service plans to recover the unjust profits obtained by each company through unfair procurement practices.

Kang Kyung-hoon, Director of the Procurement Management Bureau, said, “We will thoroughly investigate acts that undermine the public procurement order according to the law and recover unjust profits to actively respond so that a fair procurement order is established.”