LIG D&A faces growing hurdles in global arms export amid bribery scandal

LIG Defense & Aerospace faces a potential two-year government bidding ban amid a bribery scandal, with a Seoul Administrative Court hearing scheduled for Thursday to review the penalty. The company denies the allegations and has sought to suspend the restriction, which is paused until Nov. 20. A prolonged ban could block new domestic contracts and disrupt future defense programs, potentially affecting the company’s export expansion. Its shares have fallen around 40 percent since Oct. 6, and two brokerages have cut their target prices.

Government and public institution clients accounted for 64.5 percent, or 2.78 trillion won ($2.07 billion), of LIG D&A’s total sales last year.

The restriction does not affect existing delivery contracts or overseas export agreements, but could prevent the company from securing new development and production contracts.

LIG D&A is expected to compete for a next-generation combat unmanned surface vessel program.

The company’s shares reached a one-month high of 773,000 won on Oct. 6 and were trading around 410,000 won as of Friday.

Daishin Securities lowered its target price to 830,000 won from 990,000 won, while Hyundai Motor Securities cut its target to 925,000 won from 1.32 million won.

Published Oct 30, 2026 3:34 pm KST

Potential ruling on 2-year bidding ban could disrupt defense manufacturing cycle

LIG Defense & Aerospace (D&A)'s office in Seongnam, Gyeonggi Province / Courtesy of LIG D&A

A launch of LIG D&A’s Cheongung-II ballistic missile interceptor system / Yonhap

LIG Defense & Aerospace's (LIG D&A) overseas expansion plans could be in jeopardy, as an ongoing bribery scandal threatens to disrupt its defense development and production pipeline through a potential two-year government bidding ban.

The Seoul Administrative Court will hold a hearing on Thursday to review the company's request to suspend the enforcement of a two-year restriction imposed by the Defense Acquisition Program Administration (DAPA).

Last week, the defense authority imposed the penalty on allegations that the firm’s executives offered bribes worth hundreds of millions of won to a DAPA employee during the bidding process for a weapons development project.

LIG D&A denied the allegations and has taken legal steps for a temporary suspension of the penalty, which was originally scheduled to take effect on Thursday. The suspension will remain in place until Nov. 20.

The potential disruption carries significant implications for the company's business structure. Its government and public institution clients accounted for 64.5 percent, or 2.78 trillion won ($2.07 billion), of LIG D&A's total sales last year.

Although the restriction does not affect existing delivery contracts or overseas export agreements, a prolonged bidding ban could prevent the company from securing new development and production contracts.

This could disrupt the pipeline of future defense programs, with potential consequences for production planning, investment and its ability to expand its export business.

The timing is particularly challenging, as LIG D&A is expected to compete for major upcoming defense projects, including a next-generation combat unmanned surface vessel program.

For a defense contractor seeking to expand its international footprint, losing access to new domestic procurement projects could also weaken its position in overseas markets. Domestic defense contracts often provide opportunities to develop and validate weapons systems before pursuing larger export orders.

“Reduced access to new programs could consequently limit the company's ability to build its future product portfolio and secure additional overseas sales,” an official from the defense industry said. “The immediate priority for LIG D&A is to maintain its bidding eligibility while contesting the sanction.”

However, even if the company secures a temporary reprieve, the legal dispute will not end immediately, so it will still remain a source of uncertainty for its future projects and global expansion strategy.

LIG D&A shares have been on a steep decline over the past month due to the bribery scandal. The stock price of the firm reached a one-month high of 773,000 won on Oct. 6, but has since dropped by around 40 percent to trade around 410,000 won as of Friday.

Brokerage houses are also on track to downgrade the stock price for the company. Daishin Securities and Hyundai Motor Securities lowered their target prices for LIG D&A to 830,000 won from 990,000 won and 925,000 won from 1.32 million won, respectively.

Court temporarily suspends 2-year bidding ban on LIG D&A

LIG D&A CEO denies company's involvement in bribery allegations

因卷入贿赂丑闻，LIG国防与航空航天公司面临长达两年的政府投标禁令。首尔行政法院定于周四举行听证会，审查处罚决定。该公司否认指控，并已申请暂停该禁令，目前禁令已暂停至11月20日。长期禁令可能阻碍该公司获得新的国内合同，并扰乱未来的国防项目，进而影响其出口扩张。自10月6日以来，该公司股价已下跌约40%，两家券商已下调其目标股价。

去年，政府和公共机构客户占 LIG D&A 总销售额的 64.5%，即 2.78 万亿韩元（20.7 亿美元）。

该限制不会影响现有的交付合同或海外出口协议，但可能会阻止该公司获得新的开发和生产合同。

LIG D&A有望参与下一代无人作战水面舰艇项目的竞标。

该公司股价在 10 月 6 日达到一个月来的最高点 773,000 韩元，截至周五，股价在 410,000 韩元左右波动。

大真证券将目标价从 99 万韩元下调至 83 万韩元，而现代汽车证券将目标价从 132 万韩元下调至 92.5 万韩元。

发布于2026年10月30日下午3:34（韩国标准时间）

对为期两年的招标禁令的潜在裁决可能会扰乱国防制造周期。

LIG国防与航空航天公司（D&A）位于京畿道城南市的办公室 / 图片由LIG D&A提供

LIG D&A公司“天宫-II”弹道导弹拦截系统发布 / 韩联社

LIG 国防与航空航天公司 (LIG D&A) 的海外扩张计划可能面临风险，因为持续的贿赂丑闻可能会通过长达两年的政府招标禁令来扰乱其国防研发和生产流程。

首尔行政法院将于周四举行听证会，审查该公司提出的暂停执行国防采办计划管理局（DAPA）实施的两年限制的请求。

上周，国防部对该公司高管涉嫌在武器研发项目招标过程中向国防采纳局（DAPA）一名雇员行贿数亿韩元的指控处以罚款。

LIG D&A否认了这些指控，并已采取法律措施申请暂时中止处罚，该处罚原定于周四生效。中止令将持续至11月20日。

潜在的业务中断将对公司的业务结构产生重大影响。去年，LIG D&A 的政府和公共机构客户占其总销售额的 64.5%，即 2.78 万亿韩元（20.7 亿美元）。

虽然该限制不会影响现有的交付合同或海外出口协议，但长期禁止投标可能会阻止公司获得新的开发和生产合同。

这可能会扰乱未来国防项目的进程，并可能对生产计划、投资及其扩大出口业务的能力产生影响。

时机尤其具有挑战性，因为 LIG D&A 预计将参与即将到来的重大国防项目的竞争，其中包括下一代无人作战水面舰艇项目。

对于寻求拓展国际业务的国防承包商而言，失去国内新采购项目也可能削弱其在海外市场的地位。国内国防合同通常为企业提供机会，使其能够在追求更大出口订单之前，先开发和验证武器系统。

一位国防工业界官员表示：“新项目参与机会的减少可能会限制该公司构建未来产品组合和拓展海外销售的能力。LIG D&A 目前的当务之急是在对制裁提出异议的同时，保持其投标资格。”

然而，即使该公司获得暂时的喘息之机，法律纠纷也不会立即结束，因此它仍将对其未来的项目和全球扩张战略构成不确定性。

受贿丑闻影响，LIG D&A的股价在过去一个月里大幅下跌。该公司股价在10月6日触及一个月高点77.3万韩元，但此后下跌约40%，截至周五交易价格约为41万韩元。

券商也计划下调该公司的股票评级。大真证券和现代汽车证券分别将LIG D&A的目标股价从99万韩元下调至83万韩元，以及从132万韩元下调至92.5万韩元。

法院暂时中止对LIG D&A为期两年的竞标禁令

LIG D&A首席执行官否认公司参与贿赂指控