S. Korean, U.S. contractors indicted for USFK-related bid rigging

South Korean and American investigation authorities have cracked down on large-scale bid rigging involving the two countries’ subcontractors for United States Forces Korea (USFK) organizations, prosecutors in Seoul said Friday.

Through an unprecedented joint investigation between the two countries, a number of company executives and employees have been referred to trials on charges of colluding in bidding for USFK contracts worth 25.5 billion won (US$18 million) years ago.

The Seoul Central District Prosecutors Office said it has indicted without detention nine officials from 11 South Korean subcontractors on fair trade law violation and other charges. One of the companies was also indicted on the same charges.

In addition, an American company that took part in the bid rigging and three employees of its Korean office were referred to trials, the office said.

This is the first case in which the South Korean prosecution has conducted a direct investigation on the rigging suspects at the request of the U.S. Department of Justice under a relevant memorandum of understanding signed in 2020.

The suspects are accused of colluding in the bidding process for subcontracting orders for USFK hospital facility management and supply of goods, which were placed by the U.S. Army Corps of Engineers and the Defense Acquisition Program Administration from January 2019 to November 2023.