[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The prosecution has launched a forced investigation into allegations of bid-rigging involving domestic furniture companies such as Hanssem and Hyundai Livart.
The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeong-seop) announced on the 1st that it is conducting raids on about 10 offices of furniture companies related to the bid-rigging case for apartment furniture.
On this day, the targets of the prosecution's raids included major domestic furniture companies such as Hanssem, Hyundai Livart, Enex, Nexis, and Uami.
The prosecution believes that domestic furniture companies colluded during the bidding process to select suppliers for 'special sales furniture' to be installed in built-in form in newly constructed apartments, and has been investigating the furniture companies that supplied the products as well as the construction companies that received the furniture, on charges of violating the Fair Trade Act and the Framework Act on the Construction Industry.
It is known that the prosecution has been examining the bidding process for special sales furniture installed in over 400 apartment complexes nationwide, including Jamsil Lotte World Tower, from 2015 to the present.
In May of last year, the Fair Trade Commission, which received a report under the leniency system of the Fair Trade Act (voluntary reporting with reduced penalties) along with the prosecution, also conducted on-site investigations of the furniture companies but failed to achieve significant results.
Typically, bid-rigging cases are first investigated by the Fair Trade Commission, which then files a complaint leading to prosecution investigation; however, in this case, the prosecution directly recognized the issue and initiated the investigation prior to the Fair Trade Commission's complaint.
After completing investigations of key related parties, the prosecution plans to exercise its right to request the Fair Trade Commission to file charges. The Fair Trade Commission holds exclusive authority to file charges for violations of the Fair Trade Act.
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