HD Hyundai Heavy Industries results in ``administrative guidance'' as a result of deliberation on sanctions against fraudulent companies...Possibility of controversy = South Korea

South Korea's Defense Business Agency held a contract deliberation committee meeting from 2 p.m. on the 27th, and resolved to sanction HD Hyundai Heavy Industries as an ``administrative guidance.''
The agency said, ``Violation of the Military Secrets Act was due to illegal construction that differed from the design documents during the execution of the contract under Article 27, Paragraph 1, Items 1 and 4 of the National Contract Act.
It does not fall under the category of misconduct, such as causing financial damage or financial damage,'' and added, ``Since the expulsion period has passed, we have determined that no sanctions can be imposed.''
Furthermore, ``Sanctions pursuant to Article 59 of the Defense Business Act require the intervention of a representative or officer, which is a prerequisite for violation of the oath of good faith.''
Because the incident could not be recognized as an objective fact, no sanctions could be imposed." Prior to this, the company's employees had been working on military related projects such as the Korean-class next-generation destroyer (KDDX) project.
He was found guilty in November of last year on charges of secretly obtaining military secrets and sharing them through the company's internal network, violating the Military Secrets Act.
As a result of this ruling, the company will be unable to provide security until November 2025 under the National Radiological Agency's security regulations.
A deduction of 1.8 points was applied. A company official said, ``We respect the Radiation Agency's decision and will do our best to contribute to the growth of the defense industry by developing the domestic ship industry and increasing overseas exports.''
” he said. On the other hand, competing company Hanwha Ocean said, ``We consider Hyundai Heavy Industries' theft of secrets to be a serious mistake that shakes the very foundations of the defense industry, and we are calling for re-examination, audits, and strict police investigations.''
I will ask you to do so.” Controversy is expected to intensify in the defense industry over the results of the Defense Agency Contract Deliberation Committee.
With companies that have already been sanctioned for similar or lighter reasons than Hyundai Heavy Industries, such as DASAN Kikou,
There is also the potential for controversy regarding fairness. A person involved in the defense industry said, ``Powerful companies even mobilize politicians to influence public opinion, so they overlook (powerful companies) in this way, and the less powerful
"What does it mean for businesses to handle the matter in accordance with the law?" He criticized the incident, saying, "In order to sound the alarm to the businesses that leaked confidential information, we should not have produced results like this."
The KDDX project is an investment of 7.8 trillion won (approximately 880 billion yen) to build six 6,000-ton class next-generation Korean destroyers by 2030. This project consists of conceptual design and basic
Design, detailed design and construction of the first ship, followed by construction of the successor ship, will be carried out in that order. For this project, Hanwha Ocean was awarded the conceptual design and HD Hyundai Heavy Industries was awarded the basic design.