Police raid DAPA over alleged corruption in KDDX bidding

A mock up of a KDDX destroyer designed by HD Hyundai Heavy Industries is displayed at the International Maritime Defense Industry Exhibition 2023 held in Busan on June 7. [YONHAP]

Police raided the arms procurement agency over allegations that it manipulated conditions to select HD Hyundai Heavy Industries (HD HHI) as the preferred bidder for the basic design of the 7.8 trillion won ($5.82 billion) KDDX project.

The National Police Agency's special investigation division raided the Defense Acquisition Program Administration's (DAPA) office in Gwacheon, Gyeonggi, at around 9:50 a.m. Thursday over alleged corruption in the bid.

Police allege a senior DAPA official changed the tender conditions just before the KDDX bid began in May 2020.

HD HHI was selected as the preferred bidder for the basic design, edging ahead of Daewoo Shipbuilding & Marine Engineering (DSME), now Hanwha Ocean, in the bidding by 0.056 points in the final evaluation score. DSME won the bid for the conceptual design.

Police suspect the DAPA official deleted a clause on deducting points for a security breach. HD HHI employees were busted in 2018 for having unauthorized possession of DSME's conceptual design for KDDX, a confidential military item, which they obtained during a meeting with the Navy in 2013.

DAPA has denied charges in a press briefing on Aug. 3.

BY KIM MIN-JOONG [sohn.dongjoo@joongang.co.kr]