Prosecutors have indicted two current and former employees on detention on charges of colluding for a long period in bids for equipment devices at Korea Electric Power Corporation (KEPCO). Prosecutors say the collusion drove up winning prices and led to consumer harm, including higher electricity bills.
According to legal sources on Jan. 9, the Seoul Central District Prosecutors' Office's Fair Trade Investigation Department (chief prosecutor Na Hee-seok) indicted on detention LS ELECTRIC former Deputy Minister a person surnamed Song and ILJIN Electric adviser a person surnamed Noh on charges of violating the Fair Trade Act.
Prosecutors suspect that from 2015 to 2022, in KEPCO's open competitive bids and region-restricted bids worth 670 billion won for the purchase of gas-insulated switchgear, they agreed in advance to allocate quantities and then won contracts in turn.
Gas-insulated switchgear is equipment installed at power plants or substations that protects power facilities by quickly cutting off excessive current.
The two indicted on detention are known to have played the so-called "general affairs" role, effectively planning and coordinating the collusion by linking large companies and small and mid-sized companies.
On the 22nd of last month, the court issued arrest warrants for them, saying there was a risk of destroying evidence. Prosecutors also sought arrest warrants the previous day for Hyosung Heavy Industries executive director a person surnamed Choi and Hyundai Electric Director General a person surnamed Jeong on charges of violating the Fair Trade Act for allegedly taking part in the bid-rigging.