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[Alpha Biz=(Chicago) Reporter Kim Jisun] Public Procurement Service has imposed a six-month restriction on public bidding on LG Uplus in connection with the Korea Centers for Disease Control and Prevention's project to build a telecommunication network, and LG Uplus has filed an administrative suit, and it has been confirmed that the two sides are engaged in a legal battle.
Some of the documents submitted by LG Uplus during the bidding process were problematic. A fierce legal battle between the two sides is expected amid the growing size of public projects such as the digital platform government.
Earlier this month, Public Procurement Service disposed of restrictions on LG Uplus' eligibility to participate in public bidding for six months from November 11, 2023 to May 10, 2024 under the National Contract Act (Article 27).
Since then, LG Uplus has immediately filed an injunction with the Seoul Administrative Court to suspend administrative disposition and was cited by the court. At the same time, LG Uplus is waiting for the first trial date by filing a lawsuit against the Public Procurement Service for the cancellation of the qualification for bidding. Public bidding can be made until the final judgment of the court is made.
In the legal battle, documents submitted by LG Uplus during the bidding process became an issue. LG Uplus participated in the bidding for the 'National Information and Communication Network + Linked Information and Communication Network Service Project' ordered by the Korea Centers for Disease Control and Prevention in March and was selected as the preferred bidder and was in negotiations. The project is to build a wired communication network worth about 7 billion won.
Public Procurement Service says it has found data and related problems on paper. The Public Procurement Service imposed restrictions on public bidding for six months, saying, "The statements submitted by LG U+ related to the delay in the establishment of existing order projects for the national information and communication network and the number of orders for the branch network have been confirmed to be false."
On the other hand, LG Uplus believes there is plenty of room to argue about the disposal of the procurement agency. First of all, the contents related to documents are not an active illegal or collusion as in the past. LG Uplus said that there was a difference between Public Procurement Service and interpretation regarding the data listed on the document, and that it would respond with administrative litigation in order to resolve the misunderstanding.
LG Uplus has appointed Kim & Chang as a legal representative and is preparing for a fierce legal battle.
An LG Uplus official said, "We will fully explain our position in the lawsuit and wait for the court's judgment."
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
