Public Procurement Service Identifies Five Companies Involved in Unfair Procurement Practices Including Bid Rigging

The Public Procurement Service announced on June 18 that it had identified five companies involved in unfair procurement practices, such as bid rigging and violations of origin and direct production standards.

Provided by Public Procurement Service

Among the companies identified, one was found to have violated the Fair Trade Act by colluding in a public institution bid. The Public Procurement Service has requested that the Fair Trade Commission file charges against this company. The company was found to have reached prior agreements on the expected winner and bid amounts during the bidding process for the purchase of gas-insulated switchgear commissioned by Korea Electric Power Corporation, and to have executed these agreements by actually signing the contract.

For the remaining four companies, a decision was made to recover unjust enrichment. These companies were found to have engaged in unfair procurement practices by violating origin and direct production standards, as well as contract specifications, in four product categories, including audio mixers and asphalt concrete.

The Public Procurement Service has imposed restrictions on these companies' eligibility to participate in bids and, as a follow-up measure, decided to recover approximately 70 million won in unjust enrichment.

Baek Seungbo, Deputy Commissioner of the Public Procurement Service, stated, "We will prevent acts of bid rigging that deprive honest companies of contract opportunities, and we will ensure that any unjust profits obtained through rule violations are fully recovered, so that a fair and mutually beneficial procurement market can be established."