LIG D&A CEO denies company's involvement in bribery allegations

By Kim Eun-jung

SEOUL, Oct. 26 (Yonhap) -- The chief of South Korean defense company LIG Defense & Aerospace Co. (LIG D&A) on Monday denied the company's involvement in a bribery scandal linked to weapons procurement bids.

Appearing as a witness before the National Assembly's defense committee, LIG D&A CEO Shin Ick-hyun said two company executives indicted on charges of bribing an official at the Defense Acquisition Program Administration (DAPA) during weapons procurement tenders have maintained their innocence.

Asked whether the company knew about the alleged payment of 300 million won (US$226,700) in bribes, Shin said, "It is structurally impossible for the company to raise such an amount through its internal procedures."

Last week, DAPA barred LIG D&A from bidding on defense contracts for two years over the bribery allegations, a move that could hamper the company's efforts to secure new domestic defense orders.

LIG D&A expressed regret over the decision, arguing that the penalty was imposed before the criminal trial had concluded. The company said it plans to take legal action to challenge the ban.

Shin acknowledged his moral responsibility as CEO for the incident but maintained that the company itself was not involved.

He said LIG D&A has taken steps to reinforce its corporate compliance framework, including the establishment of a new compliance audit office.