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Photo = Fair Trade Commission |
[Alpha Biz= Kim Jisun] The Korea Fair Trade Commission (KFTC) announced on June 1 that it has imposed corrective orders and a fine of KRW 1.415 billion (approx. USD 1.03 million) on Asia Energy Co., Ltd. for violating the Monopoly Regulation and Fair Trade Act by engaging in bid-rigging in procurement tenders for wood pellets organized by subsidiaries of Korea Electric Power Corporation (KEPCO).
According to the KFTC, four companies—Asia Energy, PIO Korea, Mirae Bio, and JSF&B—colluded on 42 bids issued by five KEPCO-affiliated power generation companies between May 2016 and March 2022. The firms agreed in advance on bid volumes and prices, thereby restricting fair competition and increasing their chances of winning contracts, with the aim of ensuring stable profits.
One executive from a company that has since gone out of business was referred to the prosecution. The KFTC found that this individual orchestrated the collusion and later led the closure of three affiliated companies in an attempt to evade regulatory sanctions after receiving a review report from the commission.
Among the companies involved, Asia Energy was the only entity still in operation at the time of the decision. The KFTC imposed a KRW 1.415 billion fine on the company and issued a corrective order. The executive involved in the defunct companies is under criminal investigation.
The KFTC emphasized that the decision underscores its continued commitment to eliminating unfair collusion in public procurement markets, which undermine fair competition and harm public interest.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
