Prosecution Raids Hyosung, LS, HD Hyundai, and Others Over Years of Collusion in Korea Electric Power Bids

Prosecution Raids Hyosung Heavy Industries, LS Electric, HD Hyundai Electric, Iljin Electric, and Others
Companies Allegedly Agreed to Divide Bids Worth 560 Billion Won
Fair Trade Commission Refers Case to Prosecutors

The prosecution has launched a compulsory investigation into companies suspected of colluding for years in bids for gas-insulated switchgear commissioned by Korea Electric Power Corporation.

The Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office, led by Chief Prosecutor Na Heeseok, announced on the morning of October 15 that it was conducting search and seizure operations at the offices of six power equipment manufacturing and production companies-including Hyosung Heavy Industries, LS Electric, HD Hyundai Electric, and Iljin Electric-as well as at one association office and the offices of individuals related to the case.

According to the prosecution, these companies are suspected of agreeing in advance to allocate quantities among themselves in general competitive and regionally restricted bids worth approximately 560 billion won, conducted by Korea Electric Power Corporation between 2015 and 2022 for the purchase of gas-insulated switchgear, and then winning the bids in turn. Gas-insulated switchgear is a device installed at power plants or substations to quickly cut off excessive current and protect electrical facilities.

The prosecution believes that such collusive activities led to higher winning bids for gas-insulated switchgear, resulting in increased electricity rates and ultimately harming consumers.

Previously, the Korea Fair Trade Commission, which investigated the case, imposed a total corrective fine of 39.1 billion won on these businesses and referred six companies, including Hyosung Heavy Industries, to the prosecution.