LIG Nex1 Executive Indicted in Bribery Probe

A public official and a defense company executive have been indicted in a bribery probe, according to prosecutors. On August 20, the Suwon District Prosecutors' Office announced the arrest and indictment of A, a Grade 5 official from the Defense Acquisition Program Administration, and B, an executive from LIG D&A. A is accused of receiving bribes worth 320 million won ($246,153) and receiving authority to recommend a subcontracting company valued at 2.2 billion won ($1.69 million).

B is accused of offering bribes amounting to 20 million won ($15,384) in cash and 300 million won ($230,769) in service fees to a partner company. Three individuals, including the head of a partner company, were also indicted for participating in money laundering. The prosecution alleges that A, as a proposal evaluation committee member for six defense projects totaling 91.5 billion won ($70.38 million) from late 2021 to late 2025, gave LIG D&A favorable scores in 16 out of 20 evaluation items for one project and the lowest scores to competitors.

The investigations revealed that A's evaluations contributed to the final results being overturned for some projects. The Korean Electronic Warfare Aircraft System Development Project, worth 1.7 billion won ($1.31 million), involved three projects where fraudulent evaluations occurred. Prosecutors stated that the investigation uncovered a typical form of corruption involving collusion between the public and private sectors in the defense industry.

They plan to recover the criminal proceeds and cooperate with related institutions to improve the system. LIG D&A may also face sanctions by the Defense Acquisition Program Administration, which could restrict the company from participating in bids for two years if the bribery charges are confirmed.