Huneed Achieves Requirements for Defense Cost Integrity Estimation System

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] Hunid Technology announced on the 4th that it has met the requirements of the Defense Acquisition Program Administration's (DAPA) 'Defense Industry Cost Integrity Estimation System.'

This system was established to resolve conflicts and disputes over costs between DAPA and defense contractors. When a defense contractor submits cost data that meets the conditions specified by law, it is presumed to be truthful, and separate cost verification is omitted.

To be recognized as a defense industry cost integrity estimation company, the contractor must prepare separate defense financial statements based on accounting treatment and separation accounting standards as stipulated in related regulations and undergo an external audit. Additionally, they must introduce an internal control system for defense costs that applies the internal accounting management system according to the Act on External Audit of Stock Companies, etc. Furthermore, they must maintain certification of the defense cost management system. Hunid obtained this certification in 2014 and has maintained it since. From the beginning of this year, Hunid introduced the internal control system for defense costs and submitted the separate accounting audit report to DAPA, thereby meeting the requirements this time.

There are a total of three defense contractors in Korea that have met these requirements, and Hunid is the first small and medium-sized enterprise among them, excluding two large corporations.

Hunid expects that the administrative delays that occurred during the existing cost verification process will be resolved, enabling smooth contract promotion with DAPA. They also anticipate a significant improvement in work efficiency.

A Hunid representative said, "Through this opportunity, the reliability and transparency of Hunid's cost management system have been strengthened," adding, "As administrative procedures are simplified, we will strive to promptly advance the scheduled projects."

This content was produced with the assistance of AI translation services.