Prosecutors investigating allegations of collusion worth hundreds of billions of won in the bidding process for apartment construction supervision (construction project management services) ordered by Korea Land and Housing Corporation (LH) and the Public Procurement Service have begun securing additional materials.
According to the legal community, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Yong Seong-jin) has dispatched investigators since the morning of the 9th to five supervision firms, including architectural offices located in Gangnam-gu, Seoul, to obtain related documents.
The prosecutors are investigating allegations (violation of the Fair Trade Act) that the companies prearranged the order and successful bidders in the supervision service bids for apartment construction projects, such as the Happy Housing districts, ordered by LH and the Public Procurement Service from 2019 to 2022. At the end of August, they conducted raids on the offices and residences of executives and employees of 11 architectural firms, including Heerim Architects & Planners and KD. It is reported that the prosecutors expanded the investigation after confirming collusion allegations involving an additional five companies.
The firms targeted in the raids on this day are known to be three in Gangnam, Seoul, one in Gyeonggi, and one in Daejeon. Among the 16 companies under investigation, many are former government officials’ firms employing ex-LH employees.
Considering that the contract amounts won by these companies reach tens of billions of won per case, prosecutors estimate the total collusion amount to be in the hundreds of billions of won. Depending on the investigation's progress, this figure could increase. Separately from the prosecutors' investigation, the police and the Fair Trade Commission are also investigating construction companies and supervision firms involved in apartments with missing rebar.
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