Prosecutors Summon Dongkuk Steel CEO Over 6 Trillion Won Rebar Price-Fixing Scandal
[Asia Economy Reporter Kim Hyung-min] The prosecution, investigating the '6 trillion won steel rebar cartel suspicion,' summoned and is questioning Kim Yeon-geuk, CEO of Dongkuk Steel, on the 15th.
The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeong-seop) is reportedly verifying whether CEO Kim was aware of the collusion regarding the quantity and price of steel rebars supplied to public institutions.
CEO Kim served as head of Dongkuk Steel's Billet Business Division in 2015 and the Heavy Plate Business Division in 2017, was promoted to president in 2018, and became CEO in 2019. He recently announced his intention to resign.
Earlier, on the 12th, the prosecution also summoned and questioned Nam Yoon-young, former CEO of Dongkuk Steel, who served as the company's CEO from 2013 to 2015.
Seven steel manufacturers, including Dongkuk Steel, Hyundai Steel, Daehan Steel, Korea Steel, YK Steel, Hwanyeong Steel Industry, and Korea Steel Corporation, are under investigation by the prosecution for allegedly colluding in advance on the awarded quantities and bid prices in annual unit price contract bids for steel rebars ordered by the Public Procurement Service from 2012 to 2018. The scale of the cartel is approximately 6.8442 trillion won, the largest in the history of Public Procurement Service government procurement bids.
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The Fair Trade Commission, which uncovered the cartel, imposed fines totaling 256.5 billion won on them and reported the steel companies' corporations and nine current and former employees to the prosecution. During the investigation, the prosecution detected signs of involvement by higher-ups in each company and detained three executive-level employees on the 3rd. After confirming whether the CEOs of the seven major steel manufacturers were involved in the cartel, the prosecution is expected to decide on whether to indict by the end of this month, when the statute of limitations expires.
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