[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] Jungheung Construction and Jeil Construction, mid-sized construction companies in the Gwangju area, have come under police investigation for allegedly winning public land bids through so-called 'beoltte bidding' tactics.
The Anti-Corruption Economic Crime Investigation Unit of the Gwangju Police Agency announced on the 2nd that they executed search warrants on Jungheung Construction and Jeil Construction on charges of obstruction of business and are currently investigating two related personnel.
They are accused of increasing the winning rate by mobilizing affiliates in bids for public land issued by the Korea Land and Housing Corporation (LH), which constitutes obstruction of business.
Beoltte bidding refers to a fraudulent method where multiple affiliates or fake companies are established to participate in bids, thereby increasing the chances of winning.
Meanwhile, the Ministry of Land, Infrastructure and Transport requested a police investigation last October into construction companies such as Jungheung and Jeil, suspected of winning public land bids through beoltte bidding.
The Fair Trade Commission is also separately examining whether there were unfair support practices in transactions between affiliates after the bids were won by these construction companies.
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