Fake parts allegedly supplied for KF-16 fighters, 12.8 billion won fraudulently obtained
LIG D&A, DAPA bribery allegations raised at national audit; sanctions urged
DAPA to review bidding restrictions at contract committee meeting Oct. 20
A counterfeit component worth 1.2 million won ($895) was routed through the United States, passed off as a genuine part, and then reimported at a price of 100 million won.
The part in question is a "down converter" used in the friend-or-foe identification system of South Korea's Air Force KF-16 fighter jets. Prosecutors have indicted five company officials on charges of fraudulently collecting about 12.8 billion won in maintenance fees by supplying counterfeit parts and other means.
Separate allegations of bid-rigging involving LIG D&A have also surfaced. Prosecutors referred those involved to trial on charges that bribes were passed to Defense Acquisition Program Administration civil servants during a weapons development project evaluation, and that assessments were manipulated in favor of a specific company. The bribe amount totaled about 460 million won — the largest bribery case involving a DAPA employee since the agency was established, measured by the amount cited in the indictment.
The question of sanctions came under scrutiny at Tuesday's national audit.
DAPA Commissioner Lee Yong-cheol said the misconduct had "dealt an extremely grave blow to the organization's reputation" and vowed a firm response, but also expressed concern that restricting participation in research and development could cause serious setbacks to weapons fielding. DAPA plans to convene a contract review committee on Oct. 20 to examine possible sanctions, including restrictions on bidding eligibility.
The competitiveness of South Korea's defense industry is not determined by weapons performance alone. With corruption allegations mounting, the question of how to preserve the credibility of South Korea's defense sector remains pressing.
leeyung@heraldcorp.com
