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A KRW 2 Trillion Bid-Rigging Case — Securing an Acquittal for the Former Chairman

Background

Allegations arose of collusion worth more than KRW 2 trillion, in which several major furniture makers were said to have arranged the order of successful bids and the prices in advance for tenders to supply built-in furniture to new apartment developments. Executives at the companies involved were indicted en masse, among them the former chairman of one large furniture company. Changchun represented that former chairman.

What Was at Stake

While most of the other companies' executives admitted the charges, the former chairman denied them, saying he "was unaware of any collusion during his time in office." The issue was whether his participation could be proven "beyond a reasonable doubt" from circumstantial material such as approval documents alone.

How Changchun Helped

Changchun argued persuasively that guilt could not be established on circumstantial material alone, pointing to the employees' consistent statements that the former chairman did not know of the collusion, the small share of the company's revenue that this division represented, and evidence that documents had been processed in bulk through the electronic approval system.


The court acquitted the former chairman, holding that "there are suspicious circumstances, but it is difficult to say the case has been proven beyond a reasonable doubt." The case shows that even where many defendants are convicted, each individual defendant's participation must be examined strictly on its own. (Related coverage: Naver News) (Outcomes depend on the facts of each case and may differ.)

Case articles are anonymized within the scope of client consent and are provided for general information only, not as legal advice on any specific matter. Outcomes may differ depending on the facts of each case.