Um Dong-hwan, Director of Defense Acquisition Program Administration, Ultimately Breaks Promise and Resigns [Yang Nak-gyu's Defence Club]

HD Hyundai Heavy Industries Bid Restriction Review Ultimately Not Conducted
Post-Judgment Document Acquisition, Delay Cited Due to 'Lack of Materials'

Um Dong-hwan, the head of the Defense Acquisition Program Administration (DAPA), is stepping down. During his tenure, he promised to review the bid participation restrictions for HD Hyundai Heavy Industries but ultimately failed to keep this promise, leaving behind suspicions of favoritism toward the company.

[Image source=Yonhap News]

According to government officials on the 16th, Um Dong-hwan's farewell ceremony is scheduled to be held at the DAPA headquarters in Gwacheon-si, Gyeonggi-do. Throughout his term, Director Um had assured sanctions against HD Hyundai Heavy Industries for leaking military secrets. At last year's DAPA audit, he stated, "It was difficult to conduct a detailed review due to the unavailability of the court ruling on HD Hyundai Heavy Industries, but we have recently obtained the ruling," adding, "We plan to consider imposing debarment sanctions through contract review."

Subsequently, after the final verdict confirmed the guilt of HD Hyundai Heavy Industries employees in November last year, DAPA seemed to accelerate the review process. According to the Enforcement Rules of the Defense Acquisition Program Act (Detailed Criteria for Bid Participation Restrictions), if a person has requested or received secrets classified as Level II or Level III, bid participation can be restricted for five years. It was revealed that HD Hyundai Heavy Industries employees had leaked Level III military secrets more than eight times over a period of about three years from 2012 to 2015.

However, in the contract review committee meeting for HD Hyundai Heavy Industries held in December of the same year, DAPA suddenly postponed the decision to impose debarment sanctions. The delay in the decision led to criticism that it might have been a step to reduce the severity of the disciplinary action.

Retired Army Colonel Seok Jong-geon is being considered as the new head of DAPA. The agency plans to reconvene the contract review committee for HD Hyundai Heavy Industries later this month. Ultimately, the new director will have to decide on the sanctions.

A military official stated, "Sanction criteria should not be applied arbitrarily like 'nose rings if hung on the nose, earrings if hung on the ear,'" adding, "If the leakage of secrets is dismissed as an individual's action, it will inevitably grant impunity to defense companies involved in secret leaks."