Suspension in effect through Nov. 20

Company says it plans to pursue injunction and cancellation lawsuit

Exterior of LIG D&A's Pangyo office. [Provided by LIG D&A]
Exterior of LIG D&A's Pangyo office. [Provided by LIG D&A]

LIG D&A announced Tuesday that a court had granted a temporary suspension of the Defense Acquisition Program Administration's bidding restriction imposed on the company.

The DAPA order barring LIG D&A from participating in government procurement bids will be stayed through Nov. 20. A formal hearing on the injunction is scheduled for Nov. 5, after which the full duration of the suspension will be determined.

In the same disclosure, LIG D&A said it plans to "pursue legal action through an application for a stay of enforcement of the sanctions and a cancellation lawsuit."

Earlier, DAPA had barred LIG D&A from bidding on government projects for two years over bribery charges against company executives. Prosecutors indicted the executives on allegations that they paid hundreds of millions of won in bribes to DAPA officials during the bidding process for multiple weapons development projects, including a small drone countermeasures program. DAPA subsequently asked the Ministry of Trade, Industry and Energy to revoke LIG D&A's designation as a defense contractor for the small drone countermeasures project.

Immediately after DAPA issued the restriction, LIG D&A applied for a stay of enforcement, arguing that the agency had imposed the sanctions while legal proceedings were still ongoing.


klee@heraldcorp.com