Shin Ik-hyun, CEO of LIG Defense and Aerospace (LIG D&A), has categorically denied allegations of company involvement in a bribery case involving a Defense Acquisition Program Administration (DAPA) official. However, he acknowledged his responsibility as CEO, stating, "I feel a deep sense of responsibility for the incident."
On October 26, during a comprehensive audit session of the National Assembly's Defense Committee, Shin stated, "It is impossible for the company to procedurally prepare 300 million won for bribery."
The debate over evaluation results continued, with LIG D&A asserting that the six projects evaluated by the official were areas where the company had a unique competitive advantage, thus negating any reason for solicitation. In response, lawmaker Cheon questioned, "There are numerous cases where removing one score from a DAPA official changes the ranking, and there are many instances where the winning margin is just one point despite claims of overwhelming victory." Shin replied, "There is no way to verify how the DAPA official assigned scores."
When asked by ruling party lawmaker Yoo Yong-won if the company maintains that it is unrelated to the incident, Shin responded, "The two individuals currently indicted are claiming their innocence."
When pressed again about moral responsibility, he reiterated, "I take this incident very seriously and feel a deep sense of responsibility as CEO." He added that a task force was established immediately after the indictment to review the entire process and that a new compliance audit office has been created to strengthen internal controls.
Previously, a DAPA official was recently arrested and indicted on charges of receiving approximately 460 million won in bribes from employees of defense companies, including LIG D&A, during a weapons development bidding process. During the first trial last month, the official and those involved in money laundering admitted to the charges.
On October 20, DAPA held a meeting of the Defense Business Contract Review Committee and decided to impose the maximum penalty under the National Contract Law, a 24-month restriction on bidding eligibility, on LIG D&A. Additionally, DAPA requested the Ministry of Trade, Industry and Energy to consider canceling LIG D&A's designation as a defense contractor related to the small unmanned aerial vehicle response system project. The company plans to respond with a request for a stay of execution and a cancellation lawsuit against the sanctions.
* This article has been translated by AI.
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