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Special Investigation Team Probes Subway Construction Collusion

Special Investigation Team Probes Subway Construction Collusion

Posted August. 23, 2007 07:26,   


Special Division 1 of the Seoul Central Prosecutors’ Office has been put in charge of the investigation into the six major domestic construction companies that were indicted by the Fair Trade Commission (FTC) for bidding collusively for the construction contract to extend subway line number 7 in Seoul.

On August 22, the division disclosed that it “was appointed to investigate the case the FTC reported at the end of last month and is examining when to begin.”

Most cases reported by the FTC would ordinarily involve Criminal Division 6. Special Division 1 usually probes lobby cases and corruption suspicion, which indicates that the investigation is likely to reveal further corruption involved in the process of bidding besides collusion.

On July 17, the FTC found out that Samsung Corporation, Hyundai Engineering & Construction, Daewoo Engineering and Construction, Daelim Industrial Company, GS Engineering & Construction, and SK Engineering & Construction made a collusive bid for the contract. The FTC gave an order of correction, imposed fines of 22.114 billion won total and reported all six of them to the prosecution.

The construction companies are accused of colluding in their bids for contracts to build six subway sections so that one company will bid for one section when Seoul announced the extension of the 7 line in Seoul (from Onsu-dong, Guro-gu of Seou to Cheongcheon-dong, Bupyeong-gu of Incheon) in December 2003.