Bid Rigging and Unfair Support to Affiliates Allegations,
Officials are moving in and out of the Seoul Central District Prosecutors’ Office in Seocho-gu. Photo=News1,
‘Prosecutors investigating allegations of Daebang Construction’s resale of public land to its affiliates have summoned CEO Koo Chan-woo.’,
According to legal circles on the 18th, the Seoul Central District Prosecutors’ Office’s Fair Trade Investigation Division (led by Chief Prosecutor Kim Yong-sik) summoned CEO Koo for questioning as a suspect this morning. Koo was also summoned on the 11th and underwent intensive questioning.
The prosecution is investigating allegations that Daebang Construction unjustly supported its affiliates, such as Daebang Industrial Development, by reselling public land acquired through bid rigging. Bid rigging involves mobilizing multiple affiliates to secure public land with high development profits.
A Fair Trade Commission investigation revealed that Daebang Construction resold six parcels of public land, acquired through bid rigging from November 2014 to March 2020, to five subsidiaries. Based on the findings, the Fair Trade Commission issued correction orders and imposed a total fine of 20.56 billion won on Daebang Construction and its subsidiaries before referring the case to prosecutors.
The public land resold by Daebang Construction was located in areas such as Magok, Dongtan, Jeonnam Innovation, and Naepo in Chungnam—known to be prime land due to abundant development opportunities.
Regarding this case, the prosecution conducted a search and seizure on May 7th at Daebang Industrial Development, an affiliate of Daebang Construction.