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Antitrust regulator fines two suppliers combined 2.59 billion won for rigging Hyundai, Kia contract bids

Published: 22 Apr. 2026, 16:07 Updated: 22 Apr. 2026, 17:44

This image combines the corporate logos of Hyundai Motor, Kia, Cubic Korea. and SM Hwajin. [YONHAP]

The antitrust regulator said Wednesday it has decided to fine two local suppliers to Hyundai Motor and Kia a combined 2.59 billion won ($1.75 million) for colluding to rig bids.

SM Hwajin and Cubic Korea prearranged the winners and bid prices in five tenders held between September 2020 and April 2023 to select contractors for the surface treatment of vehicle interior materials, according to the Fair Trade Commission (FTC).

The two companies were the only registered bidders eligible for tenders by the two carmakers using the "hydrographic printing" method for interior surface treatment.

The firms colluded in bids for five new vehicle models, including the Sportage, EV9, Santa Fe, EV3 and Palisade, with contracts awarded as agreed between them.

The FTC imposed fines of 1.63 billion won on SM Hwajin and 959 million won on Cubic Korea for violating the Monopoly Regulation and Fair Trade Act.

The bid rigging is suspected to have affected production costs or retail prices of major SUVs, though the FTC said it has not conducted an analysis on whether the collusion directly led to higher consumer prices.

Last year, SM Hwajin reported around 18.5 billion won in sales, while Cubic Korea posted 227.2 billion won.

Yonhap