Seoul: 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.

According to Yonhap News Agency, the Seoul Central District Prosecutors Office has indicted without detention nine officials from 11 South Korean subcontractors on charges of fair trade law violation and other related charges. Additionally, one of these companies was indicted on the same charges. An American company involved in the bid rigging and three employees of its Korean office were also referred to trials.

This marks the first case where the South Korean prosecution has conducted a direct investigation on the rigging suspects following a request from the U.S. Department of Justice under a memorandum of understanding signed in 2020. The suspects are accused of colluding in the bidding process for subcontracting orders related to USFK hospital facility management and the supply of goods. These contracts were placed by the U.S. Army Corps of Engineers and the Defense Acquisition Program Administration from January 2019 to November 2023.