Korean Air Files Lawsuit Worth 200 Billion KRW Against Defense Acquisition Program Administration Over Delivery Delays Due to Design Change Requests

[Asia Economy Reporter Dongwoo Lee] Korean Air has filed a lawsuit worth 200 billion KRW against the Defense Acquisition Program Administration (DAPA) regarding the delivery of unmanned aerial vehicles (UAVs) for division reconnaissance.

Korean Air announced on the 14th that it filed a lawsuit at the Seoul Central District Court to confirm the non-existence of the penalty debt for delay in the initial mass production project of division reconnaissance UAVs. The reason is that the 208.1 billion KRW penalty for delay demanded by DAPA due to delivery contract delays is unjust.

In December 2015, Korean Air signed a contract with DAPA to deliver a total of 16 sets of division reconnaissance UAVs for the initial mass production project.

Afterward, when delivery was delayed due to design changes and other reasons, DAPA claimed that Korean Air was responsible for the contract delay and demanded payment of the penalty for delay.

Korean Air explained, "DAPA's unilateral demands for specification (design) and shape changes affected the planned schedule."

Korean Air added that since the delivery delay was due to reasons not attributable to them, the penalty debt for delay does not exist, and they will clearly explain this to the court to be exempted from the penalty.