Executives of Doosan and SK detained for bid rigging

By Lee Kyung-min

Two executives from Doosan Heavy Industries and SK E&C have been detained as part of an investigation into a bid rigging scandal, police said Thursday.

Doosan and SK are among 20 major builders that are being investigated for suspected bid rigging on contracts for the construction of 29 natural gas pipelines ordered by the state-run Korea Gas Corp. (KOGAS). Daelim Building, Daewoo E&C, GS E&C, Hanwha E&C and Samsung C&T are also being probed under the case.

KOGAS paid a total of 2 trillion won for the contracts from May 2009 and September 2012. The estimated damage from the bid rigging totals some 300 billion won, according to Seoul Metropolitan Police Agency.

The names of the two detained executives were withheld.

According to the National Tax Service, the total amount of fines imposed on large construction companies in the last two years for bid rigging has surpassed 500 billion won.

Forty-six of the country’s top 100 builders have also been punished for bid rigging on more than one occasion by the country’s anti-trust watchdog over the past two years.

Those fined were involved in major projects including the construction of subways in Incheon, Daegu, and Busan, and a multi-billion dollar scheme to refurbish four major rivers nationwide. Many of the projects were undertaken during the Lee Myung-bak administration.