LG Uplus banned from new bids on bribery scandal

[THE INVESTOR] LG Uplus, the nation’s No. 3 telecom carrier, has been suspended from bidding for government orders for the next three months.

According to the Office of Supply on June 30, the punitive measure took effect on June 28 following the company’s recent defeat in a legal dispute with the Ministry of National Defense.

In 2012, a military officer was sentenced to a prison term after the Defense Ministry found him guilty of taking bribes from LG Uplus in return for business favors. The ministry also ordered the company not to participate in any bidding for government orders for three months. 

But the company resisted the decision, filing a suit against the ministry.

After a legal battle lasting four years, the Supreme Court on June 28 returned the case to the Seoul High Court, saying that the ministry’s decision was legal.

During the three months, the company also cannot make any new deal even though it was chosen as a preferred bidder or a final bidder previously.

By Lee Ji-yoon (jylee@heraldcorp.com)