By Jung Min-ho
Prosecutors raided the headquarters of Hyundai Heavy Industries (HHI) in Ulsan, Thursday, as part of their investigation into widespread corruption in the defense industry.
The move came amid suspicion that a retired captain, surnamed Lim, helped the firm win the bid in selecting a supplier of three submarines, worth 1.27 trillion won ($1.1 billion), from 2007 to 2009 by changing the evaluation criteria in favor of the company.
Prosecutors suspect that Lim, who was one of the project evaluators at the Submarine Command during that period, committed the alleged crime in exchange for a high-ranking post at the company after his retirement. He is now an executive at HHI.
A special investigation team from the Supreme Prosecutors’ Office collected the firm’s internal documents, computer hardware and USBs about the project during the raid.
It was the second raid on the company, following one in February as part of the same investigation. At that time, investigators also raided Lim’s home.
Reportedly, prosecutors have found that the three submarines’ capabilities were less than required, which they believe was the result of allegedly corrupt ties between the former captain and HHI.
Prosecutors found that another six former naval officers involved in the project also ended up getting jobs at HHI. Yet, to charge them prosecutors have to prove their positions were given in return for their alleged roles in favoring the company during the bidding process.
The special investigation team, which is comprised of government, military and prosecution officials, has cracked down on corruption in the defense industry after a series of shady deals recently came to light.