'6.7 Trillion Won Bid Collusion': Hyosung Heavy Industries, Hyundai Electric Employees Detained Over Evidence Tampering Concerns

On January 12, employees of Hyosung Heavy Industries and HD Hyundai Electric, who are suspected of colluding in bids for equipment ordered by Korea Electric Power Corporation, were taken into custody.

Nam Sejin, Chief Judge in charge of warrants at the Seoul Central District Court, conducted a substantive review of the arrest warrants for Mr. Choi, Executive Director at Hyosung Heavy Industries, and Mr. Jeong, General Manager at Hyundai Electric, both accused of violating the Monopoly Regulation and Fair Trade Act. After the review, the judge issued the arrest warrants, citing concerns about the destruction of evidence.

Previously, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office, led by Chief Prosecutor Na Heeseok, requested arrest warrants for these individuals. They are accused of agreeing in advance to allocate quantities and take turns winning bids in general competitive and regionally restricted tenders, worth a total of 670 billion won, held by Korea Electric Power Corporation for the purchase of gas-insulated switchgear between 2015 and 2022.

Prosecutors believe that the collusion led to higher bid prices for gas-insulated switchgear and increased electricity rates, resulting in consumer harm.

Mr. Song, a former director at LS Electric, and Mr. Noh, an advisor at Iljin Electric, who are accused of playing the role of general coordinator and planner in the collusion process, have also been indicted and taken into custody.

The Fair Trade Commission, which previously investigated the case, issued corrective orders to these companies, imposed a total fine of 39.1 billion won, and referred six companies, including Hyosung Heavy Industries, to the prosecution. In October last year, prosecutors launched an investigation by conducting searches and seizures at these companies.