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Photo = Fair Trade Commission |
[Alpha Biz= Reporter Kim Jisun] Three major steelmakers based in Busan—Korea Steel, Manho Steel, and DSR Steel—have been found to have colluded in wire rope bidding for the past 13 years, manipulating bid prices and other aspects. The Fair Trade Commission (FTC) announced on the 9th that it imposed a total fine of 1.35 billion KRW on the companies for violating the Fair Trade Act. Among them, Manho Steel has been referred to the prosecution.
Korea Steel and Manho Steel are leading steelmakers in the Busan region, while DSR Steel operates businesses based in Busan and Gwangyang, Jeonnam. The companies' respective fines are as follows: Korea Steel 520 million KRW, Manho Steel 519 million KRW, and DSR Steel 315 million KRW.
The FTC investigation revealed that the three companies engaged in bid-rigging in 34 public and private wire rope tenders from 2009 to 2022, either by pre-agreeing on the winning bidder or sharing bid prices.
Wire ropes, made from steel cores and used for lifting heavy objects, are widely used in industries like shipbuilding, construction, and shipping due to their high strength and flexibility.
Specifically, the three companies had prearranged for long-standing business partners to consistently win tenders in 21 bids from six private companies. Additionally, Korea and Manho Steel agreed to alternate winning bids for 13 tenders issued by the Korea Coal Corporation, with Manho winning in odd years and Korea winning in even years.
The FTC pointed out that the companies had met beforehand or communicated via KakaoTalk or phone to agree on winning bidders and colluding participants to prevent profit losses from low bidding. These actions were deemed violations of the Fair Trade Act.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
