LIG D&A barred from defense tenders for two years — Korea Herald
In South Korea, the Defense Acquisition Program Administration (DAPA) has banned LIG D&A from participating in state defense tenders for two years. The sanction was imposed amid a case involving alleged bribery and expense-related violations, Korea Herald reports.
DAPA's Contract Review Committee approved the maximum suspension period under the State Contracts Act. The agency said this was the largest bribery case in its history and also cited repeated and deliberate expense manipulation that, in DAPA's view, harmed national security and public trust.
Investigation details
According to the Suwon District Prosecutors' Office, a DAPA official is suspected of receiving 460 million won in bribes between 2021 and the end of 2025. In August, investigators said that, according to their account, 320 million won was handed over in cash and another 140 million won through subcontractors.
Investigators allege that, in exchange, the official gave LIG D&A favorable evaluations in six defense projects with a total value of 91.5 billion won. In one tender for intelligent signal detection technology, he allegedly awarded the company the highest scores in 16 of 20 evaluation categories, while giving competitors the lowest scores in all categories.
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The company will challenge the sanction
LIG D&A disagreed with DAPA's decision. The company said the sanction was imposed solely on the basis of an indictment before a court ruling and announced its intention to seek a court order temporarily suspending its effect.
For now, the suspension applies to only one of the six projects under review, so DAPA may introduce additional measures. LIG D&A's existing contracts are not expected to be affected, but after the two-year ban, the company will have penalty points for another three years, which could weaken its position in tenders for up to five years overall.
Analysts at DS Investment & Securities noted that the restriction does not apply to overseas deals. However, it will deprive LIG D&A of the opportunity to sign new domestic defense contracts, which usually total between 2 trillion and 3 trillion won annually. Exports of Cheongung-II and Long-Range Surface-to-Air Missile air defense systems, according to the brokerage firm, remain a key revenue driver for the manufacturer.
