Cable suppliers involved in price-fixing pay high dividends to shareholders
Less than two weeks after the country's eight cable suppliers were fined for price-fixing, a new report shows they have been engaged in other unethical practices.
According to online market researcher Chaebul-dot-com, the eight cable suppliers, including money-losing Taihan Electric Wire, paid a combined 77-billion won,.. or roughly 72-million U.S. dollars, in dividend payments over the past five years.
It also found the firms spent 13 million dollars on so-called entertainment expenses for their clients.
Earlier this month, the Fair Trade Commission fined the eight companies based on how much each had gained unfairly through price fixing.
But this is just the latest in a string of corruption scandals shaking the nation's nuclear power industry.
Just last week, one of the eight companies, JS Cable, was found to have supplied cables with fake quality warrants for two reactors -- the Shin Gori Reactors 3 and 4.
This has pushed back the start date for both reactors to 2015, raising concerns about a possible power shortage next year.
In a related development, a report on Monday shows that the Korea Hydro and Nuclear Power Corporation, the state-run company in charge of the country's nuclear power plants, has granted a large number of contracts to suppliers run by employees' family members over the past ten years.
The report, which was compiled by ruling Saenuri Party lawmaker Lee Cha-ik based on the operator's data, showed that the contracts were worth 21-billion won, or 20-million U.S. dollars.
Yoo Li-an, Arirang News.
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