Fair Trade Commission: "Sejung, Dongbang, Sebang Colluded in Transport Bidding... Corrective Orders and 4.9 Billion KRW in Fines Imposed"

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 7th that it has decided to impose corrective orders and fines totaling 4.91 billion KRW on three companies, including Sejung, for colluding in bids for heavy cargo transportation such as ship engines conducted by Doosan Engine from 2008 to 2016.

According to the Fair Trade Commission, Sejung, Dongbang, and Sebang participated in bids for heavy cargo handling and domestic transportation services, as well as in-house heavy equipment operation such as forklifts, conducted annually by Doosan Engine from 2008 to 2016. They pre-determined the winning bidder and the supporting bidders. They also jointly decided on the bid prices to ensure the agreement was realized.

The three companies agreed to designate Sejung as the winning bidder, with Dongbang and Sebang as supporting bidders. Furthermore, for the handling work among the awarded volumes, Dongbang and Sebang were to be responsible. As agreed, Sejung won the bids held annually from 2008 to 2016, and the handling work was subcontracted by Sejung to Dongbang and Sebang.

A Fair Trade Commission official stated, "This action is significant in uncovering collusive behavior where transportation operators maintained collusion over a long period, thereby increasing the ordering party's transportation costs." He added, "Including this action, the ongoing detection of collusion in transportation bids is expected to contribute to eradicating collusion in the freight transportation market."

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