Police Conduct Search and Seizure at Three Sites Including Hoban Construction Over 'Swarm Bidding' in Public Housing Development

Police launched a forced investigation on the 1st into construction companies suspected of acquiring public land through the so-called 'swarm bidding' method.
[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] The police have launched a forced investigation into construction companies suspected of acquiring public land through so-called 'swarm bidding.' Swarm bidding refers to the practice where construction companies use affiliated or partner companies to engage in illicit bidding to increase their chances of winning public land bids.

The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit announced that they have been conducting raids at the headquarters of Hoban Construction, Woomi Construction, and Daebang Construction since the morning of the 1st.

This raid began after the Ministry of Land, Infrastructure and Transport requested an investigation by the police.

The police are also investigating these construction companies for violations of the Framework Act on the Construction Industry. Under the current Framework Act on the Construction Industry, it is prohibited to lend the name of a construction business operator through disguised affiliated companies during the bidding process. It is reported that about 10 suspects, including representatives of affiliated companies, have already been booked.

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