Prosecutors Raid Hanssem Amid Apartment Furniture Collusion Allegations

On June 2, it was confirmed that prosecutors conducted a search of Hanssem's headquarters in relation to allegations of collusion in the apartment system furniture sector. This follows Hanssem's previous indictment for a separate case involving collusion in bidding for new apartment furniture worth 2 trillion KRW, for which the company was found guilty in both the first and second trials, and the prosecution has filed an appeal.

According to reports, the Seoul Central District Prosecutors' Office's Fair Trade Investigation Department, led by Chief Kim Yong-sik, began the search last week. This action comes after the Fair Trade Commission imposed a fine of 18.3 billion KRW on Hanssem and 19 other furniture companies in February, and subsequently referred Hanssem, Dongseongsa, SpaceMax, and Jamart to the prosecution.

The investigation revealed that sales representatives from these companies colluded on bids for 190 system furniture contracts issued by 16 construction firms from February 2012 to November 2022. They reportedly agreed on the winning bidder and bid prices in advance, using methods such as drawing lots to determine the order of winning bids. Out of the 190 bids they participated in, collusion was successful in 167 cases, generating a total revenue of approximately 332.4 billion KRW.

Additionally, on May 15, Hanssem was fined 200 million KRW in the appeals trial concerning the new apartment furniture bidding collusion case. Six other companies involved also received fines ranging from 100 million to 200 million KRW, and ten employees from these companies received suspended prison sentences. However, former Hanssem Chairman Choi Yang-ha was acquitted in both trials.