LIG D&A chief rejects claims the firm took part in weapons-procurement bribes
LIG Defense & Aerospace CEO Shin Ick-hyun told a National Assembly defence panel that the company was not involved in a bribery case linked to defence contracts.
At a hearing of the National Assembly's defence committee, Shin Ick-hyun, chief executive of LIG Defense & Aerospace Co., asserted that the firm had no role in the bribery scandal surrounding defence procurement tenders. He noted that two senior managers indicted for allegedly paying a 300 million-won bribe to a Defense Acquisition Program Administration official have maintained their innocence. When asked if the company was aware of the payment, Shin replied that internal procedures make it impossible for the firm to raise that amount.
The scandal prompted DAPA to suspend LIG D&A from defence contract bids for two years, a move the company says was premature before the criminal trial concludes. LIG D&A expressed regret over the sanction, announced plans to legally challenge it, and highlighted the creation of a compliance audit office to strengthen corporate governance. Shin accepted moral responsibility as CEO but reiterated that the corporation itself was not implicated.
Why it matters
The dispute could affect South Korea's defence procurement market and the reputation of a major domestic arms maker.
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