2 coal ash-treatment firms fined over collusion

SEJONG, July 11 (Yonhap) -- South Korea's corporate watchdog said Wednesday that it has levied a total of 5.2 billion won (US$4.66 million) in fines on two firms that provide treatment services for coal ash, for cartel-like activities.

The Fair Trade Commission (FTC) said the two firms, including KC Cottrel Co., colluded to intentionally submit high prices for orders, valued at 117 billion won, to treat coal combustion residuals, produced by three state-run power generators in 2013, in a bid to force the Korea Midland Power Corp. and the two others to raise bidding prices.

Consequently, the three utility firms were forced to raise bidding prices, and the two firms won the project at higher prices.

The FTC said it referred the two firms and their top executives to state prosecutors for further investigation.

Coal combustion residuals are produced primarily from the burning of coal in coal-fired power plants.

sam@yna.co.kr
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