Highway Rest Area Bid Information Leaked? Ministry Requests Investigation into Korea Expressway Corporation and Former Employees’ Company

Bidding Information Reported to Doseonghoe Two Months Before Announcement

Bid Price Submitted Nearly Identical to Average of Competitors

The Ministry of Land, Infrastructure and Transport has requested a police investigation of Korea Expressway Corporation officials and the head of a former employees’ company on charges of leaking information and colluding on prices during the bidding process for highway rest area operations.

On the 11th, the Ministry announced that it had referred four officials from Korea Expressway Corporation and the CEO of H&DE, a subsidiary of Doseonghoe—an association of the corporation’s retirees—for investigation. The main allegations concern interference in the bidding process and breach of trust (including suspicions of preferential contracts) during the selection of the operator for the Seonsan (Changwon-bound) Rest Area in August last year. The Ministry made this decision based on the results of an audit into the appropriateness of rest area facility operations conducted on Korea Expressway Corporation and Doseonghoe on the 7th.

Kim Yoonduk, Minister of Land, Infrastructure and Transport (second from left), received a report on the rest area operation status from officials of the Korea Expressway Corporation at the Giheung Rest Area on the Gyeongbu Expressway, which he visited on the 9th of last month to inspect unfair practices at rest areas. Ministry of Land, Infrastructure and Transport

The Ministry first confirmed circumstances suggesting that bidding information had been leaked in advance. Although Korea Expressway Corporation announced the bidding for the Seonsan Rest Area operation contract on May 15 last year, H&DE had already reported detailed bidding information and its participation plan to the Doseonghoe board two months earlier, in March. The report included confidential internal matters such as the status of research projects, the bidding announcement, and the proposal schedule.

Potential price information leaks and collusion were also identified during the bid price calculation process. The winning bid for the Seonsan Rest Area is determined by the average price submitted by participating companies. The price submitted by H&DE was almost identical to the average bid of the other participants. Such a result would be difficult to achieve without prior coordination of price information with insiders. The usage fee rate for the rest facility is set at a minimum of 12.33% of sales, which directly determines the rent that future operators must pay to Korea Expressway Corporation.

The Ministry stated, "We have referred the case to the National Police Agency on charges of interference in bidding and breach of trust," adding, "We will actively cooperate with the investigation by providing audit materials to the police."

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