Regulator Fines Firms Over Rail Bid Collusion
News: South Korean antitrust regulator the Fair Trade Commission (FTC), imposed a combined KRW40.2bn (US$37.2mn) fine on 12 construction companies for collusion in the bidding process for a large-scale metropolitan rail project. The companies that have been fined include Hyundai Engineering & Construction, Samsung C&T Corp, Daelim Industrial, POSCO Engineering & Construction and SK Engineering & Construction. The FTC plans to refer eight of the firms to the prosecution for further examination. It is believed the firms secretly held meetings to determine who should be chosen to lead the KRW798.9bn (US$739.28mn) project under way in Daegu, about 300km south of Seoul. Samsung and Hyundai were fined the highest, at KRW5.56bn (US$5.15mn) each. Daelim Industrial was fined KRW5.46bn (US$5.05mn), while POSCO and SK Engineering were fined KRW5.25bn (US$4.86mn) and KRW3.97bn (US$3.67mn), respectively.