Korea’s FTC fines canal colluders US$ 94 million

By Chris Sleight08 April 2014

South Korea’s competition authority, the Fair Trade Commission (FTC), has fined nine construction companies a total of KRW 99.1 billion (US$ 94 million) for price collusion and bid rigging on the country’s canal construction project.

The scandal has many parallels with the Four Rivers Restoration project, also a pet scheme of former President Lee Myung-bak, where many of the same chaebols (conglomerates) colluded on price. Prior to his 2008 – 2013 term in office,, Mr Lee was chairman and CEO of Hyundai Engineering & Construction (E&C) in the 1970s and 1980s, one of the companies named in both scandals.

Four companies will face fines in excess of KRW 10 billion (US$ 9.5 million) - Daewoo E&C, SK E&C, Daelim Industrial and Hyundai E&C, while lesser penalties are being imposed on Samsung C&T, Hyundai Amco, GS E&C, Hyundai Development, Dong-A Industrial, Dongbu and Halla E&C.

In addition, five unnamed senior executives from among these companies are expected to face penalties. They are said to have met in a restaurant in 2009 to discuss bids and the division of work on the project through collusion on bids.

Latest News
Profile of ITC keynote speaker Christophe Simoncelli
Simoncelli has spent more than 23 years working with Potain and Manitowoc
Liebherr crawler crane repowers wind farm
The 1000 tonne crane will install ten new 138 metre wide turbines and features a 168 metre lattice boom, a derrick boom and an F2 jib
IRC conference attracts 300 delegates
Ninth IRC equipment rental conference successfully held in Shanghai on 25 October