Fair Trade Commission: "Sebang and KCTC Colluded in Ship Engine Parts Transport Bidding... Corrective Order and Fine Imposed"

[Sejong=Asia Economy Reporter Joo Sang-don] Sebang and KCTC were caught colluding in a bid for transporting ship engine parts and have been sanctioned by the Korea Fair Trade Commission (KFTC).

On the 19th, the KFTC announced that it decided to impose corrective orders (prohibition of future acts) and a total fine of 10 million KRW on Sebang and KCTC, who colluded in the bonded transportation service bid conducted by Doosan Engine in November 2016.

According to the KFTC, Sebang and KCTC agreed that KCTC would win the bid for heavy cargo maritime transportation, and Sebang would win the bids for Busan and Incheon land transportation, which were divided into three separate bids. They also agreed on the bid prices for each bid and designated a dummy bidder.

Sebang and KCTC participated in each bid according to the initially agreed bid prices. As a result, KCTC was selected as the successful bidder for the heavy cargo maritime transportation bid as prearranged. However, although Sebang bid lower than KCTC in the Busan and Incheon land transportation bids as agreed, it was ultimately rejected because another bidder who did not participate in the collusion submitted a lower price.

A KFTC official stated, "This case reconfirms that even failed collusion will be strictly sanctioned if competition is restricted during the bidding process." He added, "The KFTC will continue to monitor collusive acts in the bidding market and impose strict penalties according to the law if detected."

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