Police said Wednesday they have launched an investigation into suspicions that Korean builder GS Engineering & Construction Corp. (GS E&C) received kickbacks worth hundreds of millions of dollars from subcontractors.
Investigators launched the probe earlier this February after being tipped off that GS E&C pocketed kickbacks from subcontractors by exaggerating the costs of construction projects, according to police officials.
Although the probe is currently being carried out based on allegations that the money was exchanged among individual employees or departments, police say they are also looking into the possibility that the rebates were systematically arranged by company executives in an attempt to create slush funds.
"At this point the probe is only at an internal level, as we have yet to come up with any suspects or summon specific individuals for questioning," police officials said.
"We will have to figure out the exact amount of the kickbacks before making any inquiries as to whether company executives were involved and what the money was used for."
Officials at GS E&C, a company considered to be a key player in the local construction sector, called the allegations "a groundless rumor."
"It may be possible that an illegal exchange of money occurred among the subcontractors, but it has nothing to do with GS E&C," a company official said. (Yonhap)