Police Raid KAI HQ in Corruption Probe, Report Says

By James T. McKenna | August 28, 2017
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Police yesterday raided Korea Aerospace Industries’ (KAI) headquarters as part of a corruption probe, according to the Yonhap news service.

The South Korean news agency reported that investigators Aug. 28 searched offices in the factory construction and accounting divisions of the company’s headquarters in Sacheon, about 160 nm south-southeast of Seoul. Yonhap said the search was separate from an ongoing investigation into whether top KAI officials manipulated expenses and test results for defense projects, including development of the KUH-1 Surion utility helicopter.


Some of the scrutiny regarding KAI is tied to a crackdown of military-industry corruption by President Moon Jae-in, who won South Korea's top office in early May after his predecessor was impeached and removed from office. Investigators raided KAI offices in Seoul and Sacheon July 15.

The crackdown prompted the resignation of KAI CEO Ha Sung-yong, who took that step mid-July to take responsibility for government scrutiny of the company. It also led Moon to replace the head of the country’s Defense Acquisition Program Administration, which oversees military program development and acquisitions.

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