Denial of Charges in First Trial Over 670 Billion Won KEPCO Bid-Rigging Case... Executives Request Bail

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Power equipment companies indicted on charges of colluding on gas insulated switchgear (GIS) bids commissioned by Korea Electric Power Corporation (KEPCO) denied the allegations at their first trial.

The 32nd Criminal Division of the Seoul Central District Court (Presiding Judge Ryu Kyungjin) held the first hearing on May 6 for eight corporations, including Hyosung Heavy Industries, HD Hyundai Electric, LS ELECTRIC, and Iljin Electric, as well as former and current executives and employees, all charged with violating the Monopoly Regulation and Fair Trade Act, among other offenses.

According to the prosecution, between 2015 and 2022, the defendants allegedly colluded on 145 GIS bids commissioned by KEPCO, amounting to approximately 677.6 billion won, securing at least 160 billion won in unfair gains.

At the trial, the defense teams argued that there was no intent to collude or that the prosecution's charges lacked specificity, asserting their clients' innocence.

The attorney for Hyosung Heavy Industries stated, "During the alleged period of collusion, the contract amount with Hyosung actually decreased, and the charges even include bids in which Hyosung did not participate, making the prosecution's claims difficult to accept on common-sense grounds."

Other major companies also maintained that "each bid was submitted according to company-specific logic, and there was no prior communication between the companies."

The attorney representing Iljin Electric claimed that "the prosecution obtained materials protected under attorney-client privilege (ACP) during the search and seizure," arguing that the evidence collection was unlawful.

Going forward, the court plans to verify specific facts through witness examination, focusing on the extent of involvement in collusion and whether there were agreements on individual bids.

Meanwhile, at the same trial, a bail hearing was held for four current and former executives and employees who were indicted and detained. The defendants emphasized the necessity of standing trial without detention by citing their urgent personal circumstances.

In contrast, the prosecution stated, "We inevitably requested arrest warrants for only the minimum number of individuals due to concerns over the destruction of evidence," and added, "Given the scale and seriousness of the collusion, the nature of the crime is severe, and the risk of evidence destruction remains."

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