Rail Vehicle Collusion: Three Companies Including Hyundai Rotem Fined 56 Billion Won

[Asia Economy Sejong=Reporter Dongwoo Lee] The Korea Fair Trade Commission announced on the 13th that it imposed corrective orders and a total fine of 56.4 billion KRW on three companies, including Hyundai Rotem, for colluding over several years in railway vehicle purchase bids issued by Korail and Seoul Metro.

According to the Fair Trade Commission, these companies predetermined the winning bidders in six railway vehicle purchase bids issued by railway operators such as Korail and Seoul Metro from January 2013 to November 2016, a period of about four years. They also pre-allocated the quantities to be won by each company in five railway vehicle purchase bids issued from February to December 2019.

The Fair Trade Commission stated that Hyundai Rotem agreed and executed three times to provide some subcontracting related to the bidding project as compensation to Woojin Industrial Systems, which had supplied electronic components since the January 2013 'Gimpo Urban Railway Train Operation System Bulk Purchase and Installation Bid,' to prevent Woojin Industrial Systems from bidding or to participate as a cover bidder.

Furthermore, as competition among Hyundai Rotem, Woojin Industrial Systems, and Dawonsys intensified in railway vehicle purchase bids from 2017 to 2018, they pre-allocated the winning bids for five tenders from February 2019.

Specifically, Woojin Industrial Systems won the bid for 'Lines 5 and 7 New Electric Train Cars (336 units) Purchase Bid (February 2019),' Dawonsys won the 'Mainline Electric Multiple Unit (EMU-150) 208 units Purchase Bid (September 2019),' and Hyundai Rotem won the other three bids.

The Fair Trade Commission explained, "This collusion is significant in that it corrects competition-restricting acts within the transportation industry, which has large transaction volumes and amounts, and is linked to national key industries with substantial economic ripple effects."

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