Choi Yang-ha, the former chairman of HANSSEM, was acquitted in the second trial, just like in the first trial, in a case where he was charged with collusion worth 2.3 trillion won during the bidding process for built-in furniture in apartments.

However, seven furniture companies indicted alongside were found guilty in the second trial and each received fines ranging from 100 million won to 200 million won. Those involved in the companies, excluding Choi, were sentenced to suspended prison terms.

The appearance of the Seoul High Court in Seocho-gu, Seoul. /Courtesy of News1

On the 15th, the 5th Criminal Division of the Seoul High Court (presiding Judge General Kwon Soon-hyung) delivered the ruling on the appeals regarding Choi Yang-ha, former chairman of HANSSEM, and furniture companies including HANSSEM, ENEX, Hansem Nexus, NEXIS Design, Wooami, Sun & L Interior, and Reverse, as well as current and former executives of each company who were accused of violating the Construction Industry Basic Law.

On that day, Choi Yang-ha, former chairman of HANSSEM, was acquitted, just like in the first trial. However, ten current and former employees of the furniture companies were each sentenced to imprisonment ranging from 10 months with a suspended sentence of 2 years to 1 year with a suspended sentence of 2 years.

The corporations that were indicted together received fines. HANSSEM and ENEX were fined 200 million won, while Hansem Nexus, NEXIS Design, and Wooami were fined 150 million won each, and Sun & L Interior and Reverse were fined 100 million won each.

The court stated, "This case of bid collusion infringed upon the trust in the fairness of private biddings and the right of construction companies as bid implementers to choose contractors, undermining the principles of market economy, consumer protection, and national economic development through fair and free competition, and the crime is severe." The court added, "The collusion in the special furniture market has been widespread for an extended period and has become established as a practice, thus effective punishment is inevitable."

Regarding the reason for acquitting Choi, the court stated, "It is insufficient to acknowledge that he was aware of and conspired or was involved in this bid collusion." The court noted, "There is no confirmation that an employee of HANSSEM testified that this bid collusion was reported to Choi, and while some expressions that could imply collusion were included in HANSSEM's monthly meeting materials, there are many opposing circumstances confirming that it would have been difficult for Choi to recognize the collusion."

Earlier, the furniture companies were indicted for allegedly colluding to agree on the successful bidder and bidding prices in 783 cases of built-in furniture bids for new apartment construction sites ordered by 24 construction companies between 2014 and 2022. The scale of the collusion was investigated to have reached 2.3261 trillion won.

In the first trial, which took place in June of last year, the companies were found guilty and fined, and suspended prison sentences were imposed on the individuals of each company. However, Choi, who denied the allegations during the trial, was acquitted in the first trial as well.

Meanwhile, this case marks the first instance where an investigation was initiated by prosecutors based on a voluntary report from one company, without a complaint from the Fair Trade Commission, according to the 'Cartel Leniency Policy.' The Cartel Leniency Policy allows the first priority reporting party to be exempted from prosecution if they provide the most needed evidence alone before or after the commencement of the investigation and fully testify about related facts while cooperating until the trial ends. Hyundai LIVART, which voluntarily reported as the first priority to both the prosecutors and the Fair Trade Commission, received immunity from prosecution.