The Council on Ethics recommends that its observation of Hyundai Engineering & Construction Co Ltd (HDEC) be discontinued, as the Council considers that the risk of gross corruption in the company’s operations no longer is unacceptable.
HDEC is one of the largest construction companies in South Korea. In July 2021, the company was placed under observation based on allegations or suspicions of corruption in Algeria, South Korea and Indonesia in the period 2008–2018, as well as the company’s involvement in widespread bid rigging and illegal price collusion in South Korea between 2005 and 2013. The Council considered that HDEC had not taken the various allegations seriously enough and that much remained to be developed and implemented with respect to the company’s systems and procedures for the prevention and detection of corruption.
Throughout the observation period, the Council has had the impression that HDEC’s efforts to prevent, detect and deal with corruption have steadily improved, and the Council’s assessment now is that the company seems to have put in place an anti-corruption system that, in most areas, aligns with internationally recognised recommendations. Also, during the observation period, the Council has not uncovered any new allegations of corruption relating to the company’s business.
On 3 December 2024, Norges Bank announced its decision to discontinue the observation of HDEC.