Two inspections of Woojin Industrial Systems have not produced an apparent sign of bid-rigging, according to an unidentified industry source quoted by the Korea Herald, as South Korea investigates suspected coordination in rail-parts tenders.
The Korea Herald reported that the Fair Trade Commission (FTC) began the inquiry Oct. 21. It covers Woojin and at least one other supplier, with officials examining suspected coordination in railway-parts tenders. Woojin is South Korea’s second-largest railway vehicle maker, according to the outlet. The newspaper said the FTC declined to comment.
The inquiry concerns a small part of Woojin’s business, the Korea Herald reported. The company started in railway components in 1974 and moved into rolling stock during the 2010s as it pursued higher-value train contracts. The paper estimated that domestic parts sales generate about 5% of revenue. When sales abroad are counted, the share remains below 10%, it said.
The Korea Herald described rail-parts supply as a field of many firms competing for smaller contracts, while a few companies dominate train manufacturing. An industry source argued Woojin has little reason to collude because components represent a limited share of revenue and the company has established manufacturing capabilities. The source also characterized bid-rigging as a way for firms to improve their prospects when they struggle to win on their own or want to raise prices.
Woojin now appears mainly in parts tenders when its earlier trains need maintenance or upgrades, the source said. It can also be the only qualified bidder when its proprietary technology is required, according to the report. The source cited the company’s long experience in railway components as an advantage over smaller suppliers.
Those points reflect the industry source’s assessment, not a regulator’s finding. The Korea Herald reported that the FTC has not disclosed its conclusions or said when it might finish the investigation.
