Bid Rigging in Freight Transport Service Bidding by 5 Companies Including Dongbang, CJ Logistics, and Hanjin...Fine of 540 Million KRW

[Asia Economy Reporter Joo Sang-don] Five companies, Dongbang, Sebang, CJ Logistics, KCTC, and Hanjin, were caught by the Fair Trade Commission for colluding in a freight transportation service bidding.

On the 12th, the Fair Trade Commission announced that it decided to impose corrective orders and a fine of 554 million KRW on these five businesses.

According to the Fair Trade Commission, the five companies?Dongbang, Sebang, CJ Logistics, KCTC, and Hanjin?agreed on bid prices to allow Dongbang to win in five bids conducted by Doosan Heavy Industries to select a transporter for cargo such as transformers delivered to power plants, and executed this agreement. Additionally, four companies?Dongbang, Sebang, CJ Logistics, and KCTC?agreed on the transport equipment to be leased and the planned lease prices in two bids held by Doosan Heavy Industries to lease trailers and other transport equipment, and executed this agreement.

Furthermore, three companies?Dongbang, Sebang, and CJ Logistics?agreed on bid prices to allow Dongbang to win in a bid conducted by Hyundai Samho Heavy Industries to select a transporter for cargo such as marine crane components delivered to Hyundai Heavy Industries, and executed this agreement.

A Fair Trade Commission official stated, "This action is significant in that it uncovered collusive behavior where transport operators maintained long-term collusion in freight transportation service bids, raising the ordering companies' transportation costs," adding, "It is expected to make a considerable contribution to deterring similar collusion in future freight transportation service bids."

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