Fines of 980 Million Won Imposed on Two Companies for Bid Rigging in Local Government Waste Incinerator Installation Project

Daekyung ESCO·Chosun Naehwa ENG, etc.

[Asia Economy Reporter Moon Chaeseok] The Fair Trade Commission announced on the 28th that it has detected bid-rigging by two companies, Daegyeong ESCO and Chosun Naehwa ENG, and decided to impose corrective orders and a total fine of 988 million KRW.

The two companies were caught by the Fair Trade Commission for colluding in bids for 13 municipal solid waste incinerator installation projects ordered by 15 local governments, including Sinan-gun, from 2010 to 2015.

The two companies agreed in advance on bid prices and the expected winning bidder and executed the plan. Daegyeong ESCO won all 13 bids by using Chosun Naehwa ENG as a front to jointly decide the bid prices each time a bid was held.

Since 2010, 15 local governments including Sinan-gun have selected contractors for incineration facilities with a daily capacity of 70 tons through bidding.

The Fair Trade Commission found that the two companies violated Article 19, Paragraph 1, Item 8 (bid-rigging) of the Fair Trade Act and imposed corrective orders and a total fine of 988 million KRW.

Moon Jaeho, head of the Cartel Division at the Fair Trade Commission, said, "This action detected and sanctioned bid-rigging that caused damage to local governments during the incinerator installation process," and added, "It is expected to have a deterrent effect on similar collusion in the future."

He also stated, "We plan to continue strengthening monitoring of collusion occurring during public project implementation in cooperation with public institutions and local governments, and to carry out preventive activities such as distributing materials to related businesses."

This content was produced with the assistance of AI translation services.