Defense official and LIG D&A executive indicted over bribery in multi-billion dollar project

A high-ranking official at South Korea's Defense Acquisition Program Administration (DAPA) and an executive from LIG Defense & Aerospace (LIG D&A) face charges of bribery and corruption related to a major defense project. The official, identified only as Mr. K, a Grade 5 civil servant aged 49, is accused of accepting bribes totaling over 300 million won (approximately $270,000 USD) and subcontracting recommendations.

In return for these benefits, prosecutors allege that Mr. K provided LIG D&A with favorable evaluations for six defense projects between late 2021 and the end of 2025. These projects were valued at approximately 91.5 billion won (around $82 million USD). The alleged corruption is believed to have facilitated LIG D&A's involvement in crucial technologies for a larger system development project worth an estimated 1.7 trillion won (about $1.5 billion USD).

Prosecutors further revealed that Mr. K received an additional 140 million won (around $126,000 USD) in bribes from a subcontracting firm he had recommended. The bribery scheme reportedly involved multiple companies and offshore accounts, with funds channeled through a firm operated by Mr. K's relatives and associates before reaching his personal accounts. Investigators noted that the recommended subcontracting firm lacked the necessary qualifications and technical capabilities.

The extent of the favoritism was evident in the evaluation process. In one technical assessment in October 2021, Mr. K awarded the favored company the highest score in 16 out of 20 categories, while giving the competing firm the lowest score in all categories. This resulted in a 20-point difference, significantly larger than the 2-7 point discrepancies among other evaluators. The indictment also includes four other individuals, including another LIG D&A executive and a subcontractor representative.