LIG D&A CEO denies bribery allegations amid defense sanctions

Shin Ik-hyun, CEO of LIG Defense & Aerospace (D&A), has denied allegations that the company provided bribes to officials at the Defense Acquisition Program Administration (DAPA). During a National Assembly audit on October 26, Shin testified that it would be “structurally impossible” for the company to organize bribery funds at a corporate level.

LIG D&A executives are currently on trial for allegedly providing between 300 million and 320 million won to DAPA officials between 2021 and 2023 to secure favorable evaluations for defense projects. While Shin stated he has not been under investigation personally, he expressed a sense of responsibility as CEO.

As a result of the scandal, DAPA has imposed a two-year ban on LIG D&A's participation in bids, effective from November 21, 2024, to November 20, 2028. Furthermore, authorities are reviewing the cancellation of the company's defense industry designation and its defense cost management system certification. If the designation is revoked, the company could lose its eligibility for a 122.3 billion won mass-production contract for a small unmanned aerial vehicle (UAV) countermeasure system. Additionally, the cancellation of cost management certification could lead to the recovery of tens of billions of won in previously paid compensation profits.