1 Trillion Won High-speed Train Bid Rigging Suspicions

Officials from the Suseo High-Speed Railway operator SR and Hyundai Rotem are under investigation in connection with a suspected 1 trillion won (US$738 million) bid-rigging scandal involving third-generation high-speed train procurement.

According to the police on Oct. 17, the Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency launched an investigation into a senior executive of SR, identified as Mr. A, and two officials from Hyundai Rotem, on allegations of obstructing the bidding process.

Earlier this year, SR had placed an order for 112 units of the EMU-320, a distributed power high-speed train valued at approximately 1 trillion won, and selected Hyundai Rotem as the anticipated contractor for both the introduction and maintenance of the trains. At the time, Woojin Electric had formed a consortium with Spanish rail vehicle manufacturer Talgo to compete for the order but failed to secure it.

The police suspect that Mr. A leaked the list of evaluators to outsiders and are keenly investigating whether the list was subsequently handed over to Hyundai Rotem.