Prosecutors Indict CEO of Company for Manipulating Helicopter Parts Prices, Embezzling 29.9 Billion Won from the National Treasury Without Detention

The CEO of a helicopter company accused of receiving hundreds of millions of won in national budget funds through manipulation of helicopter parts prices has been brought to trial.

The International Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Ji-hyung) announced on the 5th that two individuals, including CEO A of a helicopter parts import and repair company, and the corporation itself have been indicted without detention on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).

They are accused of creating a paper company from 2017 until last year to manipulate the import prices of Russian-made helicopter (KA-32) parts at inflated prices and exaggerate repair costs, pocketing a total of 29.9 billion won.

The prosecution suspects that A, who holds a virtually dominant position in the domestic supply market for Russian-made helicopter parts, privately acquired national budget funds. It is understood that A and others exploited the blind spots where government agencies find it difficult to easily identify transaction relationships with foreign companies. Investigations revealed that demand for Russian-made helicopters remains steady due to their aging.

A prosecution official stated, "We will make every effort to maintain the prosecution to ensure that a sentence commensurate with the crime is imposed, and will continue to strictly deal with corruption that undermines the soundness of national finances."

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