LIG D&A Faces Loss of Defense Contractor Status, Putting 122.3 Billion Won Program at Risk
The Defense Acquisition Program Administration (DAPA) is pursuing additional sanctions against LIG Defense & Aerospace (LIG D&A), following a two-year bidding ban, by seeking to revoke the company's designation as a defense contractor over bribery and cost-related fraud allegations. The move goes be
The Defense Acquisition Program Administration (DAPA) is seeking to revoke LIG Defense & Aerospace's (LIG D&A) designation as a defense contractor due to bribery and cost-related fraud allegations. This move could put a significant program worth 122.3 billion won at risk, as the designation is required to secure mass-production contracts for completed weapons systems.
The bid ban, which already bars the company from new competitive bids, could also hinder LIG D&A's ability to build a global competitive position in the counter-drone market. A hearing to decide on the revocation will be held by the Ministry of Trade, Industry and Energy. The case began with the indictment of a LIG D&A executive for bribery, and prosecutors allege the official received 460 million won in bribes during proposal evaluations for six projects between 2021 and 2025.
LIG D&A has contested the actions and filed legal challenges, arguing the sanctions are unjust given ongoing court proceedings.
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