'HD Hyundai Heavy Industries Confidential Theft Case' Spreads to the National Assembly [Yang Nak-gyu's Defence Club]

The 'HD Hyundai Heavy Industries employees' confidential information leak incident' has escalated to the National Assembly. On the 27th of this month, the Defense Acquisition Program Administration (DAPA) is scheduled to review HD Hyundai Heavy Industries' eligibility to participate in bids after illegally stealing military secrets. Even lawmakers from the same party are expressing differing opinions on this matter.

Kim Dae-sik, Chief of the Special Ship Planning Department at Daewoo Shipbuilding & Marine Engineering, is submitting a national audit request regarding the legality of the selection process and project progress of the Korean next-generation destroyer (KDDX) project currently underway by HD Hyundai Heavy Industries in front of the Board of Audit and Inspection in Jongno-gu, Seoul on the 19th. This audit request was made through the voluntary participation of Daewoo Shipbuilding & Marine Engineering employees. Photo by Kang Jin-hyung aymsdream@

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HD Hyundai Heavy Industries employees were convicted last year for leaking military secrets, including the concept design of the Korean next-generation destroyer (KDDX). DAPA plans to hold a contract review committee meeting on the 27th to deliberate on whether to designate HD Hyundai Heavy Industries as a debarred company. If designated as such, their eligibility to participate in bids will be restricted.

Kwon Myung-ho, a member of the People Power Party whose constituency includes HD Hyundai Heavy Industries' Ulsan plant, held a press conference on the 20th, emphasizing, "If HD Hyundai Heavy Industries is excluded from bidding, it is tantamount to shutting down the special ship business." He added, "The special ship division of HD Hyundai Heavy Industries has sales of 1 trillion won and employs 1,700 people. The citizens of Ulsan are deeply concerned."

The stance of Seo Il-jun, another member of the same party, differs. Seo's constituency is Geoje, Gyeongnam, where the competing company Hanwha Ocean's Geoje plant is located. On the same day, Seo stated, "The KDDX military secret theft case should be used as an opportunity to restore the foundation of South Korea's defense industry." He also criticized the 2019 attempt by Hyundai Heavy Industries to sell Daewoo Shipbuilding & Marine Engineering, saying, "It directly led to the collapse of Geoje's commercial district and the outflow of population, causing harm to 240,000 Geoje citizens."

Previously, last year, former DAPA chief Um Dong-hwan had promised sanctions against HD Hyundai Heavy Industries for leaking military secrets. During last year's national audit, he stated, "We have secured the court ruling on HD Hyundai Heavy Industries. We plan to review debarment sanctions through contract deliberations." However, in December last year, DAPA postponed the decision on debarment sanctions at the contract review committee meeting regarding HD Hyundai Heavy Industries. The delay in the decision raised concerns that it might be a step to reduce the severity of the disciplinary measures.

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