Prosecutors raided seven property insurance firms yesterday on allegations that they colluded to rig costs within the bidding for presidency contracts looking for property insurance protection for public rental homes, Yonhap News Agency reported citing officers.
The Seoul Central Prosecutors’ Office despatched investigators to KB Insurance, Samsung Fire & Marine Insurance, MG Non-life Insurance, Hanwha General Insurance, Heungkuk Fire & Marine Insurance, Korean Reinsurance, and Meritz Fire & Marine Insurance.
The property insurers are alleged to have colluded to escalate the provide costs in aggressive bidding for 2 property insurance orders by the Korea Land & Housing Corp., the state housing developer, together with one in 2018 to cowl public rental properties. They colluded to supply low bids or drop out of the bidding to let KB Insurance win the contracts.
The raid by the prosecutors’ workplace adopted a effective levied by the Fair Trade Commission in April on the seven insurers and a state-run insurance agent. They have been fined a mixed KRW1.76bn ($1.33m) for the price rigging.
The fee at the moment additionally referred KB Insurance and the insurance agent to prosecutors for investigation, together with three of their staff.
Prosecutors are anticipated to summon officers from the seven insurance firms quickly for questioning.
