A South Korean court rejected an injunction filed by HD Hyundai Heavy Industries against the Defense Acquisition Program Administration (DAPA), in which the company argued that DAPA's decision to extend its security penalty deduction was unfair.
According to the court and the defense industry on the 5th, the 50th Civil Division of the Seoul Central District Court dismissed the injunction filed by HD Hyundai Heavy Industries against DAPA, which had claimed that DAPA's decision to extend the security penalty deduction against the company was unfair.
At the injunction hearing held on the 1st before the 50th Civil Division of the Seoul Central District Court, the counsel for HD Hyundai Heavy Industries requested that the extension of the penalty deduction be suspended, saying, "We cannot understand why DAPA changed its interpretation of the regulations regarding the deduction."
The counsel argued, "In previous bids, results were decided by margins of less than one point, and other companies could gain windfall benefits from the 1.2-point deduction applied under this extension," adding, "The resulting disadvantage will come back as a burden on the public."
DAPA recently announced that it would extend by one year, until December this year, the security penalty deduction (1.8 points) imposed on HD Hyundai Heavy Industries following a military secrets leak in September last year.
The measure followed a guilty verdict against HD Hyundai Heavy Industries executives and employees on charges of photographing and leaking military secrets, including conceptual designs related to the KDDX project.
However, the court did not accept HD Hyundai Heavy Industries' injunction request, signaling that DAPA's decision to extend the security penalty deduction was not unfair.
