This article was posted on the ChosunBiz RM Report site on June 13, 2025, at 8:50 a.m.
The Fair Trade Commission has confirmed that it conducted field investigations on five construction companies, including Dongbu Corporation and Ssangyong Engineering & Construction, in relation to allegations of bid rigging for public housing construction by Korea Land and Housing Corporation (LH). It seems the Fair Trade Commission is turning its focus toward mid-sized construction companies.
According to the construction industry on the 13th, the Fair Trade Commission recently visited the headquarters of Dongbu Corporation, Ssangyong Engineering & Construction, Bando Construction, Hanjin Heavy Industries, and Daebo Construction to secure internal documents related to bidding. Previously, on the 22nd of last month, it also conducted investigations on construction companies including Hanshin Engineering & Construction, Hyosung Heavy Industries, Heungwha Construction, and Dongmun Construction.
This investigation is a follow-up action after LH and the Public Procurement Service reported suspected collusion to the Fair Trade Commission, each having detected signs of collusion since last year. The Public Procurement Service suspected collusion when two companies submitted the same price in the bidding for the ‘Goyang Changneung apartment construction project’. LH also discovered similar cases in last year's civil engineering and remodeling of old rental housing, as well as in this year's public housing project in Suwon Dangsu, and requested investigations.
The Fair Trade Commission is paying attention to the abnormal increase in the lowest bid rate and the recurring appearance of companies bidding with the same price. It is particularly known to be focusing on whether bidding brokers coordinated prices in advance among multiple construction companies.
A source in the construction industry noted, “We will have to see how far the investigation expands, but there are already rumors in the industry that a place has voluntarily reported for leniency.”
An official from the Fair Trade Commission said, “We cannot confirm whether there will be investigations into individual cases or specific details,” adding, “If unfair transaction activities are confirmed, we plan to take strict action in accordance with relevant laws.”