DAPA imposes 24-month bid ban on LIG D&A over bribery case; company to seek injunction as shares fall 12 percent in two days

The Defense Acquisition Program Administration contract review committee, meeting at the Government Complex Gwacheon on October 20, 2026, restricted LIG Defense & Aerospace from bidding on defense contracts for 24 months, choosing the maximum sanction under the State Contracts Act over a monetary fine. DAPA cited the largest bribe since its founding, long-term and deliberate misconduct, and damage to trust in defense procurement; prosecutors allege about 460 million won flowed to a DAPA evaluation official across six projects worth 91.5 billion won between 2021 and 2025, and four defendants admitted the charges at a Suwon District Court hearing on September 29. The sanction so far covers only the small-UAV countermeasure project, with the other five still under review. LIG D&A said it regretted a decision based on an indictment while the trial is ongoing and will file for a suspension of enforcement, arguing irreparable harm to schedules such as the KF-21 long-range air-to-air missile development; according to the company disclosure as reported, the ban runs from October 29, 2026 to October 28, 2028 unless suspended. Existing contracts and exports are not directly affected, but roughly 75 percent of first-half 2026 sales were domestic. The shares fell 9.03 percent on October 21 and 3.11 percent the next day.