Why does LIG D&A CEO Shin Ick-hyun deny that the company was involved in the alleged bribery?

Shin said the company could not have raised the alleged 300 million won through its internal procedures. He also said the two indicted executives had maintained their innocence.

What is LIG D&A doing to challenge the two-year defense-contract bidding ban?

LIG D&A said it plans to take legal action against the ban, arguing that DAPA imposed the penalty before the criminal trial had concluded. The ban could hamper the company’s efforts to secure new domestic defense orders.

What compliance changes has LIG D&A made following the bribery allegations?

The company said it had reinforced its corporate compliance framework, including by establishing a new compliance audit office. Shin acknowledged moral responsibility as CEO for the incident while denying company involvement.

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

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Summary

LIG Defense & Aerospace CEO Shin Ick-hyun denied the company’s involvement in bribery allegations during a National Assembly defense committee hearing on Monday. Two executives have been indicted over alleged payments to a Defense Acquisition Program Administration official during weapons procurement tenders, and Shin said they maintain their innocence. DAPA barred the company from bidding on defense contracts for two years last week. LIG D&A plans to challenge the ban in court and has established a compliance audit office.

Key Facts

The alleged bribe was 300 million won, or $226,700.
Shin said it was structurally impossible for the company to raise that amount through its internal procedures.
LIG D&A argued that the penalty was imposed before the criminal trial had concluded.
Shin acknowledged moral responsibility as CEO while maintaining that the company itself was not involved.

By Yonhap

Published Oct 26, 2026 4:55 pm KST

LIG Defense & Aerospace CEO Shin Ick-hyun / Courtesy of LIG D&A

The chief of 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 ($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.

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