By Jung Sung-ki
Staff Reporter
Prosecutors raided the facility of STX Engine in Yongin, Gyeonggi Province, last week on suspicion of corruption related to the firm supplying engine and radar systems for the Navy's new guided-missile patrol vessels, sources said Monday.
The engine manufacturer signed the 73.5 billion-won deal last month with the Defense Acquisition Program Administration (DAPA) to supply four PKG (Patrol Killer, Guided Missile) class boats with its 16V/1163 TB93 diesel engines. It is also supplying radar systems for the PKG vessel.
The Navy plans to deploy more than 20 PKGs by 2015 in stages with three ships having been launched so far.
The prosecutors' office in Seongnam, Gyeonggi Province, is investigating an allegation that the firms concerned might have inflated the unit cost of spare parts, the sources said.
The investigation comes as the government is pressing hard to eradicate irregularities involving arms acquisition deals.
Last year, Doosan Infracore, which supplied the lead PKG ship with its MTU 12V 595 TE90 diesel engine, was accused of inflating the cost.
There was also a controversy over the PKG's shortcomings that emerged during the dry and wet runs of the lead ship, Yoon Young Ha.
The builder, Hanjin Heavy Industries, has insisted that the problems have been fixed.
"The prosecution is investigating a few more high-profile defense companies on suspicion of irregularities and leakage of military secrets," a prosecutor said.
The alleged corruption involving the supplier of the PKG engine may deal a blow to an envisaged export of PKG boats to Kazakhstan.
According to the DAPA, Kazakhstan is considering buying the PKG ship as part of its naval modernization programs.
To that end, Kazakhstan's navy chief, Zhanzakov Zhandarbek, arrived in Seoul earlier in the day for a five-day trip.
Zhandarbek plans to visit the production facility for the PKG ship and meet with Korean Chief of Naval Operations Adm. Jung Ok-keun and DAPA Commissioner Byun Moo-keun during his stay, the agency said.
The 440-ton PKG ship is armed with 140-kilometer-range Haeseong ship-to-ship missiles and a 76-milimeter gun with a range of 16 kilometers.
The 63-meter-long, 9-meter-wide ship is also equipped with a 40-milimeter gun that can fire 600 rounds per minute and has a maximum speed of 40 knots. The ship has advanced anti-air/anti-ship radar and electronic warfare systems.
Established in 1976 as an affiliate of STX Business Group, STX Engine has been specializing in diesel engines, power generation systems and energy plants. The company also develops sonar systems and electronic warfare suite for unmanned aerial vehicles.