[Alpha Biz= Kim Jisun] SEOUL, November 17 — The Korea Fair Trade Commission (KFTC) has imposed a total fine of KRW 48.38 billion on Umi Construction and ten affiliated companies for illegally channeling large construction projects within the group to meet eligibility requirements for “swarm bidding” in public housing land auctions. The KFTC will also file a criminal complaint against Umi Construction for violating the Monopoly Regulation and Fair Trade Act.
The fines include:
Umi Development (KRW 13.21B), Umi Construction (KRW 9.24B), Simwoo Construction (KRW 6.54B), Umi Global (KRW 4.78B), Myungsang Construction (KRW 3.95B), Jeonseung Construction (KRW 3.37B), Umi Estate (KRW 2.51B), Myungseon Construction (KRW 2.42B), Umi Industrial Development (KRW 1.57B), Myungil Construction (KRW 0.71B), Cheongjin Construction (KRW 0.073B).
Umi Group operates as a mid-sized property developer specializing in public housing construction, and owns the apartment brand “Umi Lynn.” To raise its chances of winning public housing tenders, the group used multiple affiliates in coordinated bids and redistributed construction performance records internally.
Public criticism of such practices intensified in the 2010s, leading Korea Land & Housing Corporation (LH) in 2016 to tighten first-round bidding requirements, allowing only companies with construction records of 300 or more housing units to participate.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
