▲ Fair Trade Commission
The Fair Trade Commission (FTC) is reportedly investigating six construction companies, including Gyeryong Construction, Kolon Global, and Isu Construction, over suspicions of bid-rigging in public construction projects.
According to the industry today (October 28), the FTC is conducting on-site inspections at six construction firms—KR Industry, Jinheung Corporation, Gyeryong Construction, Kumho E&C, Kolon Global, and Isu Construction—to secure relevant data.
The FTC is reportedly looking into whether construction companies that participated in projects subject to the Korea Land and Housing Corporation's (LH) comprehensive evaluation system for bidding colluded in advance on bidding prices, predetermined successful bidders, or agreed to have stalking-horse bidders participate.
The comprehensive evaluation system is a mechanism introduced to prevent the degradation of construction quality caused by lowest-bidder auctions, selecting winning bidders by comprehensively evaluating construction performance capability and social responsibility.
The FTC is also reportedly investigating suspected bid-rigging in the Southern Inland Railway construction project commissioned by the Korea National Railway.
The investigation is reportedly being led by the Construction and Energy Cartel Investigation Division, which was newly established earlier this month.
An FTC official stated, "We cannot confirm individual cases."
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