Prosecutors Conduct Search and Seizure at Hyundai Steel and Six Other Major Steelmakers Over 'Rebar Collusion'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution, investigating the 'rebar bidding collusion' case involving steelmakers, has launched a forced investigation by conducting raids on Hyundai Steel, Dongkuk Steel, and others.

According to the prosecution on the 12th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jung-seop) sent prosecutors and investigators to Hyundai Steel, Dongkuk Steel, Daehan Steel, Korea Steel, YK Steel, Hwanyeong Steel Industry, and the headquarters of Korea Steel on the same day to secure related materials on suspicion of violating the Monopoly Regulation and Fair Trade Act.

Hyundai Steel, Dongkuk Steel, and other seven major domestic steelmakers, along with rolling companies such as Hwajin Steel and Kosteel, are suspected of participating in bid rigging from 2012 to 2018. It was investigated that they pre-allocated winning quantities and agreed on prices in annual unit price contract bids for rebar. The bids have been regularly conducted by the Public Procurement Service. Various public institutions, including local governments and schools under city and provincial education offices, conduct bids for purchasing rebar for use, covering quantities of 1.3 to 1.5 million tons on a one- or two-year basis, with a total contract amount of approximately 950 billion KRW.

Upon detecting this, the Fair Trade Commission imposed corrective orders and fines totaling 256.5 billion KRW on 11 companies and reported seven companies including Hyundai Steel, Dongkuk Steel, Daehan Steel, Korea Steel, YK Steel, Hwanyeong Steel Industry, and Korea Steel, along with nine current and former employees of these companies, to the prosecution.

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