Business · Markets · 46 mins ago
LIG D&A shares fall as agency seeks review of defense status
LIG Defense & Aerospace shares fell sharply in South Korea on Oct.
26, dropping 6.62% in early trading.
The fall followed news that the Defense Acquisition Program Administration asked for a review of the company’s defense-contractor designation.
The request is linked to a project to counter small unmanned aircraft, and the agency asked the industry ministry to consider cancelling the designation.
Investors may be concerned that the move could disrupt the company’s future plans.
The company already faces a two-year ban on bidding in connection with alleged bribery of an agency employee during a weapons-development tender.
LIG D&A said it regrets the sanctions being raised while legal proceedings are under way and will present its position through the established process.
LIG Defense & Aerospace shares fell more than 6% early on Oct. 26 after a government agency sought a review of the company’s defense contractor status.
The Defense Acquisition Program Administration asked the Ministry of Trade, Industry and Energy to consider revoking the designation over a small-drone countermeasure project.
The shares were down 6.62% at 444,000 won at 9:14 a.m., after opening 7.68% lower.
The company said it regretted that a further sanction was being discussed based only on charges while legal proceedings to establish the facts were under way.
The agency had barred LIG D&A from bidding for two years on Oct. 20 over alleged bribery involving an agency employee.
- Who
- LIG Defense & Aerospace and the Defense Acquisition Program Administration.
- What
- LIG D&A shares fell as the agency asked for a review of the company’s defense contractor designation.
- When
- Oct. 26, 2026; the agency said the previous day that it had made the request.
- Where
- South Korea’s stock market.
- Why
- Investors were concerned that the review could impede the company’s future plans. The agency’s request concerned the small-drone countermeasure project.
LIG Defense & Aerospace
Defense Acquisition Program Administration
Basis for further sanctions
LIG Defense & Aerospace
The company said it deeply regretted discussion of sanctions based only on the charges while legal procedures to establish the facts were under way.
Defense Acquisition Program Administration
The agency asked the Ministry of Trade, Industry and Energy to review whether to revoke LIG D&A’s defense contractor designation in connection with the small-drone countermeasure project.
The Defense Acquisition Program Administration barred LIG D&A from bidding for two years.
The agency said it had asked the Ministry of Trade, Industry and Energy to review revoking the company’s defense contractor designation.
LIG D&A shares fell more than 6% in early trading.
- Early trading, Oct. 26
- Shares down 6.62% at 444,000 won at 9:14 a.m.
- Intraday low
- 432,500 won, down 9.04%
- Review request
- Concerned LIG D&A’s defense contractor designation
- Earlier sanction
- Two-year bidding ban imposed on Oct. 20
- Share decline
- Down for five consecutive trading days through Oct. 26
What people are saying
We deeply regret that such a sanction is being discussed based only on the charges, even though legal procedures to establish the facts are under way.
We will faithfully present our position through the established procedures.