HD Hyundai Electric and ILJIN Electric shares plummeted in the after-market on the 18th. This is believed to be due to the impact of a collusion issue that has restricted bids from the national and local governments and public institutions for six months.
HD Hyundai Electric shares recorded 457,000 won at 6:13 p.m. The stock fell 3.99% (19,000 won) from the previous closing price. At the same time, ILJIN Electric shares traded at 37,300 won, down 5.81% (2,300 won) from the previous closing price.
This contrasts with HD Hyundai Electric and ILJIN Electric, which had increased by about 1% in regular trading. It appears that the announcement made by HD Hyundai Electric and ILJIN Electric, stating that their qualifications for public construction bids have been restricted after the regular market closing, influenced this change. Along with these two companies, ten other businesses, including Hyosung Heavy Industries and LS ELECTRIC, were previously found to have colluded during the bidding process for gas-insulated switchgear (GIS) ordered by Korea Electric Power Corporation.
The expected duration of the bidding restrictions for the two companies is six months, from the 25th until January 24, 2026. Last year, HD Hyundai Electric's public institution sales were 289.1 billion won. Reflecting the expected restriction period (six months), this represents about 4.35% of last year's sales. Similarly, ILJIN Electric accounts for 8.54% (13.48 billion won) of its sales based on the same metrics.
The corporations plan to respond to the administrative penalties with an injunction application and a cancellation lawsuit. They also stated that they would minimize the impact, focusing on overseas markets and the civilian sector.