The Fair Trade Commission has launched a probe into the state-run power monopoly Korea Electric Power Corp. on allegations of unfair business activities, government and industry sources said Wednesday.
South Korea’s top antitrust watchdog dispatched investigators on Monday to the offices of KEPCO and its affiliates ― Korea East-West Power Co. and Korea Westernpower Co. ― to conduct an on-the-spot probe based on allegations that they gave business favors in transactions between them, the sources said.
They are also suspected of awarding business contracts in exchange for having their retired executives hired by the affiliates in question.
The move from the watchdog comes as the nation’s public sector is still reeling from a series of corruption scandals found among many leading public companies including those governing nuclear reactors. Firms are currently undergoing restructuring measures to cut costs and becoming more financial healthy.
Meanwhile, the FTC is said to have “voluntarily” started the investigation, which seems to be in line with its earlier pledge that it will actively push to eradicate unfair business activities involving public enterprises, the sources said.
