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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] The Korea Fair Trade Commission (KFTC) has imposed corrective orders and a combined fine of 4.358 billion KRW on eight companies for colluding in public tenders for water purification products, the commission announced on December 14. Among the firms, S&F Korea, which led the collusion, is expected to face criminal prosecution.
The companies involved—Kirung Industrial, Miju NB Chem, S&F Korea, SY Chem, Kolon Life Science, Hansol Chemical, Ecolab Korea, and Hwaseong Industrial—colluded during the procurement of water treatment organic coagulants between 2017 and 2023. They prearranged winning bidders and bid prices, with non-designated firms submitting bids only as formal participants. Organic coagulants are polymer compounds used to clump fine insoluble particles in water for sedimentation.
S&F Korea, which profited the most from the collusion, won 141 out of 225 tenders and was fined 2.186 billion KRW. Kolon Life Science received 82 contracts and was fined 1.822 billion KRW. These two companies coordinated bid quantities to maintain mutual benefit, while the collusion led to higher-than-fair prices, resulting in public budget losses.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
