Three Companies Colluding in Apartment Elevator Maintenance Bidding Fined 53 Million Won

[Image source=Yonhap News]

Companies that colluded on bid prices in the elevator defect repair construction tender for an apartment complex were caught.

The Fair Trade Commission announced on the 26th that it has decided to issue corrective orders and impose a fine of 53 million KRW on three businesses?AR Elevator, Daemyung ENG, and Daejin Elevator?that colluded on the winning bidder and bid prices in the elevator parts replacement construction tender announced in December 2021 by the Dongwoo 1st Apartment Residents' Representative Meeting located in Cheonan.

According to the Fair Trade Commission, Daemyung ENG, which had long monopolized elevator maintenance at Dongwoo 1st Apartment, requested AR Elevator, which is its affiliate, and Daejin Elevator to participate in the tender so that either Daemyung ENG or AR Elevator would win the bid for the elevator parts replacement construction.

Daemyung ENG prepared estimates with specific bid prices and delivered them to AR Elevator and Daejin Elevator, and the two companies that received the cooperation request participated in the tender with the bid prices as provided. As a result, AR Elevator, which bid the lowest price as intended by Daemyung ENG, was selected as the winning bidder.

The Fair Trade Commission stated, "This action detected and sanctioned collusive bidding behavior in daily life-related tenders that cause burdens on residents amid difficult economic conditions, and it is expected to contribute to reducing the management fee burden for residents of aging apartments."

This content was produced with the assistance of AI translation services.