Fair Trade Commission: "Hanguk Geomjeong and KR Engineering Colluded in Bidding for 'Performance Venue Stage Facility Repairs'... Corrective Orders and Fines Imposed"

A Total of 11 Bids: Pre-Awarded Companies and Dummy Bidders Reach Agreement

[Sejong=Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission announced on the 13th that it has decided to impose corrective orders and a total fine of 13 million KRW on Hanguk Geomjeong Co., Ltd. and KR Engineering Co., Ltd. for collusion in bids for maintenance services of stage facilities at local government performance venues.

According to the Fair Trade Commission, Hanguk Geomjeong and KR Engineering agreed in advance on the winning bidder and a cover bidder in a total of 11 bids (worth 400 million KRW) for maintenance services of stage facilities issued by Mapo Cultural Foundation, Gunpo Cultural Foundation, and others from 2015 to 2017, and executed this agreement.

In these 11 bids, Hanguk Geomjeong submitted bids at 95-97% of the base amount, and KR Engineering submitted bids at 1-2% higher than Hanguk Geomjeong's bid rate, thereby executing the agreed terms.

A Fair Trade Commission official stated, "This action detected and sanctioned secretly maintained collusion in small-scale local government bids such as maintenance services for performance venue stage facilities, and it is expected to contribute to establishing competitive order in related bids in the future." He added, "The Fair Trade Commission will continue to closely monitor bid collusion that causes national treasury losses and undermines competitive order regardless of scale, and if signs of collusion are found, it plans to take strict measures through prompt investigations."

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