Why is the Defense Acquisition Program Administration Chief Pushing for Meetings with Large Corporation Owners? [Yang Nak-gyu's Defence Club]

Unusually Owner Meetings Starting Next Week
Bangsa Cheong "Listening to Difficulties," Companies "Feeling Burdened"

Seok Jong-geon, Administrator of the Defense Acquisition Program Administration (DAPA), will hold individual meetings next week with group owners who have defense companies as subsidiaries. While it is common for the DAPA Administrator to have individual meetings with defense company representatives after taking office, it is unusual to arrange meetings with group owners.

[Image source=Yonhap News]

According to DAPA on the 23rd, Administrator Seok will meet with Kim Dong-kwan, Vice Chairman of Hanwha Group (May 28), Koo Bon-sang, Chairman of LIG Nex1 (May 30), and Jung Ki-sun, Vice Chairman of HD Hyundai Group (May 31).

DAPA explained, "This is a session to listen to export difficulties as activities at the defense company group level for defense exports have increased." However, companies expressed surprise at the request for meetings with group owners.

Administrator Seok also requested meetings with Chung Eui-sun, Chairman of Hyundai Motor Group, which has Hyundai Rotem as a subsidiary defense company, and Ryu Jin, Chairman of Poongsan Group, which produces artillery shells. These companies reportedly declined the meetings citing overseas business trips of the owners.

It is also reported that the vice-ministerial level Administrator Seok’s effort to meet with group owners was intended to mediate conflicts between Hanwha Ocean and HD Hyundai Heavy Industries, the two leading players in the domestic special ship (warship construction) market. Hanwha Ocean and HD Hyundai Heavy Industries are engaged in a legal battle and escalating mutual accusations ahead of the selection of the detailed design and lead ship contractor for the Korean next-generation destroyer (KDDX) project scheduled for the second half of this year. An industry insider said, "This is not an issue for the government to intervene in."