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Source: Hanssem |
[Alpha Biz= Paul Lee] South Korean prosecutors have raided the headquarters of Hanssem, a major furniture company, as part of an investigation into alleged price-fixing in the supply of system furniture for apartment complexes.
On June 2, the Fair Trade Investigation Division of the Seoul Central District Prosecutors’ Office (Chief Prosecutor Kim Yong-sik) dispatched prosecutors and investigators to Hanssem’s head office and other companies implicated in the alleged cartel, securing relevant materials.
System furniture refers to modular units typically used in apartment dressing rooms or pantries, comprising aluminum frames and wooden shelves.
In February, the Korea Fair Trade Commission (KFTC) imposed KRW 18.3 billion (approx. USD 13.5 million) in fines on 16 furniture companies for violating the Fair Trade Act, and referred four of them, including Hanssem, for criminal prosecution.
According to the KFTC, from February 2012 to November 2022, these companies allegedly colluded on 190 bidding projects commissioned by 16 construction companies. The firms reportedly pre-arranged winners and bid prices before participating in tenders for system furniture installations in apartment developments across the country.
The watchdog concluded that collusion occurred in 167 out of the 190 bids, covering contracts worth a total of KRW 332.4 billion (approx. USD 245 million).
The ongoing investigation aims to determine the extent of the companies’ involvement and pursue potential criminal liability.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
