LIG Guhoejang's 'Not Guilty'... Will Defense Industry Exports Accelerate?

[Image source=Yonhap News]

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] There is an expectation that defense exports will gain momentum following the acquittal of Koo Bon-sang, chairman of LIG Group, who returned to managing LIG Nex1 last year.

The Seoul Central District Court Criminal Division 25-1 (Presiding Judges Kwon Seong-su, Park Jeong-je, Park Sa-rang) on the 15th acquitted Chairman Koo, who was indicted on tax charges under the Act on the Aggravated Punishment of Specific Crimes. Four LIG executives who were tried together were also acquitted. In the previous sentencing hearing, the prosecution had sought 10 years imprisonment for Chairman Koo and 8 years for former Vice President Koo, but the verdict was overturned.

The industry expects that following Chairman Koo’s acquittal, the tempo of his export strategy will accelerate. Chairman Koo has consistently emphasized that "the answer to sustainable growth is expanding overseas exports," and has fostered research and development (R&D) and overseas business personnel. It is reported that he personally oversaw bold investments such as establishing overseas business organizations and expanding manpower.

Chairman Koo’s achievements began to take shape this year. LIG Nex1 posted consolidated sales of 1.8222 trillion KRW, operating profit of 97.2 billion KRW, and net profit of 105 billion KRW last year. Sales increased by 13.9%, operating profit by 52.5%, and net profit by 81.5% compared to the previous year.

In particular, after winning a 300 billion KRW domestic development project for the Close-In Weapon System (CIWS)-II last year, LIG Nex1 recently signed a 2.6 trillion KRW supply contract for the Cheongung II with the United Arab Emirates (UAE).

LIG Nex1 plans to secure integrated solutions covering defense and civilian sectors, including △ the Korean Positioning System (KPS) with a total project cost of 3.7234 trillion KRW by 2035 △ a hydrogen fuel cell-based cargo drone with a payload capacity of 200 kg △ an advanced interception system such as the long-range artillery interception system.

Recently, the company has also significantly increased new hires. Following 250 hires in the second half of last year, an additional 150 new graduates, experienced professionals, and interns will be recruited starting from the 26th of this month. The total number of hires in the second half of last year and the first half of this year reaches 400, accounting for 11.7% of the total workforce of 3,400 employees.

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