A Kia logo on an electric vehicle is seen on display at the Canadian International AutoShow in Toronto, Ontario, Canada, Feb. 13, 2025. Reuters-Yonhap
The antitrust regulator said Wednesday it has decided to fine two local suppliers to Hyundai Motor Co. and Kia Corp. a combined 2.59 billion won ($1.75 million) for colluding to rig bids.
SM Hwajin Co. and Cubic Korea Inc. prearranged winners and bid prices in five tenders conducted between September 2020 and April 2023 to select contractors for surface treatment of vehicle interior materials, according to the Fair Trade Commission (FTC).
The two companies were the only registered bidders eligible for tenders by the two carmakers using the "hydrographic printing" method for interior surface treatment.
The firms colluded in bids for five new vehicle models, including the Sportage, EV9, Santa Fe, EV3 and Palisade, with contracts awarded as agreed between them.
The FTC imposed a fine of 1.63 billion won on SM Hwajin and 959 million won on Cubic Korea for their violation of the monopoly regulation and fair trade act.
The bid rigging is suspected to have affected production costs or retail prices of major sport utility vehicles (SUVs), though the FTC said it has not conducted an analysis on whether the collusion directly led to higher consumer prices.
Last year, SM Hwajin reported around 18.5 billion won in sales, while Cubic Korea posted 227.2 billion won.
Source: Korea Times News
