Defense Companies Tarnishing 'K-Defense' [Yang Nak-gyu's Defence Club]

Confidential Information Leak Detected, Bid Restriction Review
Full Investigation into Suspected Export of Core Aviation Technology to Three Countries

Domestic defense companies are consecutively coming under police investigation and disciplinary committee scrutiny. Since this involves the illegal leakage of military secrets, the industry points out that thorough fact-finding and punishment must follow.

On the 24th, an industry insider said, "Recently, investigations related to military secrets involving defense companies have been ongoing, causing significant damage to the 'K-Defense' image," adding, "They must be punished according to regulations."

▲Companies leaking secrets... review postponed= The company under scrutiny is HD Hyundai Heavy Industries. According to the Defense Acquisition Program Administration (DAPA), a contract review committee will be held on the 27th. It was revealed that HD Hyundai Heavy Industries employees leaked military level III secrets more than eight times over a period of about three years from 2012 to 2015.

The review committee will conduct a qualification restriction review for bidding participation based on this. If HD Hyundai Heavy Industries is restricted from participating in bids, the next-generation Korean Destroyer (KDDX) project will effectively be derailed. According to the Enforcement Rules of the Defense Acquisition Program Act (Detailed Criteria for Restriction of Bidding Participation), if a person requests or receives secrets designated as level II or III, their bidding participation qualification can be restricted for five years.

Review of HD Hyundai Heavy Industries for secret theft scheduled on the 27th

Former DAPA Administrator Eom Dong-hwan had promised sanctions against HD Hyundai Heavy Industries for leaking military secrets. At last year's DAPA audit, he stated, "It was difficult to conduct a specific review because the court ruling document was hard to obtain, but we recently secured the ruling document," and added, "We plan to consider unfair trade sanctions through contract review."

After the final verdict confirmed the guilt of HD Hyundai Heavy Industries employees in November last year, DAPA seemed to accelerate the review. However, at the contract review committee held in December of the same year, the decision on unfair trade sanctions against HD Hyundai Heavy Industries was suddenly postponed. Former Administrator Eom eventually stepped down without conducting the review. There are also criticisms that this was a step to lower the disciplinary level.

[Image source=Yonhap News]

▲Gun manufacturer involved in illegal exports under investigation= A red light has also been lit on rifles, a major export item of 'K-Defense.' The police are investigating Dasan Kigong, a domestic firearm manufacturer. Since 2016, Dasan Kigong has supplied firearms to the United Arab Emirates (UAE). However, the police are investigating the company on suspicion that the firearms were illegally exported to a third country, not the UAE. It is known that the police detected signs that firearms without serial numbers were being supplied to the conflict-ridden Middle East.

An intelligence agency official said, "If rifles are illegally exported, there is a high possibility they will be used in wars such as Russia-Ukraine or Israel-Hamas, which inevitably damages the image of the domestic defense industry," adding, "We plan to block unauthorized exports through thorough investigations."

KAI remains silent even when secrets are stolen by a third country

▲Company silent about secret leaks= Indonesian technicians working at Korea Aerospace Industries (KAI) were caught attempting to leak secrets. Before the investigation began, KAI was busy hiding the incident, claiming that only general materials were included. However, the military authorities believe they attempted to leak data related to the Korean supersonic fighter KF-21. A government joint investigation team composed of DAPA, the Defense Counterintelligence Command, and the National Intelligence Service decided to request a police investigation into Indonesian technician A. It has been 35 days since the incident occurred. When the National Police Agency's Criminal Investigation Headquarters formally starts the investigation, it is expected they will look into whether A leaked any military secrets or materials violating the Defense Technology Protection Act.

Previously, Indonesian technicians working at KAI's headquarters in Sacheon, Gyeongnam, were caught on the 17th of last month attempting to leak multiple materials, including those related to the KF-21 development process, stored on portable storage devices (USBs). The investigation target, A, is known to be at the team leader level. The government joint investigation team banned A and others from leaving the country and confirmed the information and circumstances they attempted to leak.