South Korea’s antitrust watchdog slapped a combined 32.9 billion won ($28.1 million) fine on 17 local builders Tuesday for rigging bids for large public infrastructure projects.
According to the Fair Trade Commission, the companies worked together to fix costs on five projects that prevented open competition and broke the country’s fair trade rules.
The FTC handed out 12.99 billion won in fines to Daelim Industrial Co., POSCO E&C and Samwhan Corp., which rigged the 2008 bidding for a section of expansion work on a highway.
The three companies have also been ordered to halt such practices in the future. The FTC said Namkwang Engineering & Construction and Keangnam Enterprise Ltd. have not been fined because they are currently undergoing workout programs.
The watchdog said four companies, including Daewoo E&C and Hyundai Development Co., have been fined 10.92 billion won for rigging the bidding process for a section of road and bridge project near Yeosu, 455 kilometers south of Seoul.
Other construction companies were found to have rigged the bid for a breakwater building project in Pohang and other public projects.
The fines and administrative measures are designed to prevent construction companies from making a profit at the expense of the general public that will be using the facilities. (Yonhap)
