Bid Rigging for Apartment Units Worth Over 2 Trillion Won... 8 Housing Companies Found Guilty

[Image source=Yonhap News]

Eight furniture companies and their current and former executives were found guilty of collusion in apartment unit bids worth approximately 2.3 trillion won.

The Seoul Central District Court Criminal Division 25 (Presiding Judge Ji Gui-yeon) on the 4th sentenced 11 executives of eight furniture companies including Hanssem, Hanssem Nexus, Neps, Enex, Nexis, Uami, Sun&L Interior, and Reverse?excluding former Chairman Choi?to prison terms ranging from 10 months with a 2-year probation to 1 year with a 2-year probation for violations of the Framework Act on the Construction Industry and the Fair Trade Act. Each corporation was fined between 100 million and 200 million won.

However, former Hanssem Chairman Choi Yang-ha was acquitted as there was no proof that he knowingly tolerated the company’s collusion.

The court stated, "Collusion undermines the fairness of bidding, hinders the development of the market economy, and causes significant harm to the national economy," adding, "In this case, despite the collusion continuing over a long period, it was difficult for authorities or investigative agencies to even detect it."

It further explained, "However, considering that the damage to the construction companies involved in the bids was not substantial, as well as the duration of each defendant’s participation in the collusion and the bid prices, the sentences were determined accordingly."

Regarding former Chairman Choi, the court said, "There are multiple circumstances suggesting he tolerated the collusion, such as documents he approved containing phrases hinting at collusion," but added, "Subordinates unanimously testified that he was unaware of the collusion, and there is evidence that he approved documents remotely without thoroughly reviewing their contents," which was the reason for the acquittal.

Meanwhile, the furniture companies are accused of participating in bids for kitchen and general furniture work at 783 new apartment construction sites nationwide, ordered by 24 construction companies from January 2014 to December 2022, agreeing on the successful bidders and bid prices. The scale of the collusive bids was investigated to be approximately 2.3 trillion won.

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