South Korea fines 10 firms $670,000 for bid-rigging on power cable pipes

South Korea's Fair Trade Commission (KFTC) has imposed fines totaling 870 million won (approximately $670,000) on 10 companies for colluding on bids for corrugated pipes. These pipes are essential for protecting power cables supplied by the state-run Korea Electric Power Corp. (KEPCO).

The KFTC stated that the three associations and seven firms involved had rigged bids for KEPCO's corrugated pipe procurement for over five years. The companies agreed in advance on who would win the bids and how the contract quantities would be divided among them. This long-standing collusion distorted fair competition in the procurement process.

The regulatory body issued corrective orders alongside the fines, aiming to prevent future anti-competitive practices. The investigation revealed a systematic effort to manipulate the bidding process, ensuring predetermined outcomes rather than allowing for genuine market competition.