The defense industry is an ever-developing sector that not only serves as a cornerstone of national security and defense but also provides a foundation for national economic development. Servicing clients in the defense industry requires legal specialists who have deep sector knowledge and understand the business and legal challenges that are unique to this industry in order to identify critical issues and deliver valuable advice in real time.

Legal specialists at Lee & Ko’s Defense Industry Practice Group are familiar with and have extensive experience in all areas of law relating to the defense industry, including defense regulatory framework, procurement contracts, export of defense technology and products, mergers and acquisitions, and dispute resolution (litigation and arbitration). The collective expertise of the Goup allows us to provide first-class legal service customized to the needs of the clients.

To do business in the defense-related industries in Korea, it is crucial to understand the structure and programs of the Defense Acquisition Program Administration (the “DAPA”). In January of 2006, the Korean government established the DAPA as part of its sweeping reform to systematically improve the government’s programs and decision-making process. Prior to its establishment, Korea’s defense procurement operation was shared by eight different agencies, including Ministry of National Defense, Defense Procurement Agency, Joint Chiefs of Staff, Defense Quality Assurance Agency, and Agency for Defense Development. By consolidating the defense procurement operation into a single agency, namely DAPA, it became possible to streamline the defense procurement process. DAPA oversees the planning, execution and evaluation of the weapons system, and is responsible for procurement as well as logistics contracts and defense facilities programs.

Lee & Ko’s Defense Industry Practice Group, consisting of legal specialists with prior industry and regulatory experience at the Ministry of Defense and DAPA, is well-positioned to provide effective counseling to resolve any disputes, both civil and criminal, arising in the defense industry, which are becoming increasingly more diverse and complex. Our lawyers are ready to apply our unrivaled knowledge, experience, and industry insights, and also, cooperate with other market-leading, specialized practice groups of Lee & Ko including the Litigation/Arbitration Practice Group, Mergers and Acquisition Practice Group, Finance Practice Group, IP Practice Group, Anti-trust & Competition Practice Group and Legislative Consulting Practice Group to deliver legal services of the highest caliber that surpass our client’s expectations

Expertise

General Advisory Service relating to Government Regulations on Defense Industry

Advice on procedural and legal issues relating to compliance with the regulatory framework applicable to the defense industry.
Advice tailored to the relevant government agencies including the Ministry of National Defense, Defense Acquisition Program Administration, Board of Audit and Inspection, and Ministry of Strategy and Finance.

Advisory Service on and Representation in Defense Procurement Contracts and related disputes

Advice on defense procurement contracts including DAPA contracts.
Advice on deferred compensation and related legal disputes.
Advice on and representation in actions involving sanctions or alleged unlawful practices.
Advice and representation in actions related to unlawful profit from unfair calculation of cost.
Advice on and representation in bid collusion, anti-corruption, and fair competition matters.
Advice on sale and acquisition of companies in the defense industry.

Advisory Service on and Representation in Criminal Case related to Defense Industry
Advice on and representation in criminal actions involving :

the Military Secret Protection Act.
bid collusion and fraudulent data.
bribery, embezzlement, obstruction of justice and abuse of authority
other crimes.
military disciplinary measures and personnel matters.

Advisory Service on Legislation Related to Defense Industry
Clarification on the applicable laws and regulations by obtaining official interpretations from the Ministry of Legislation and submitting inquiries to the relevant government agencies.
Advice and support in responding to :

proposed legislations and regulations.
legislative and regulatory amendments.
administrative orders, notices, guidelines, and other rules and regulations that have undergone revisions.

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Major Cases

Defended and provided legal advice in response to sanctions imposed for alleged unlawful practices (Company “L,” Company “S,” and others).
Advised on the bidding negotiations related to UAV and other weapons system procurement (Ministry of Defense, Company “R,” Company “S,” and others).
Advised on bidding negotiations for a foreign company producing and supplying missile parts.
Advised on settlement negotiations related to offset and other legal issues surrounding weapons procurement contracts.
Advised on and assisted in negotiation to export Korean tanks and other weapons.
Representation in a lawsuit related to deferred compensation.
Representation in a lawsuit involving the return of unlawful profits related to production costs.
Advised on a criminal litigation involving alleged violation of the Military Secret Protection Act.
Advised on the applicability of the Act on Contracts to which the State is a Party in a matter where the U.S. Department of Defense became a party through its Foreign Military Sales program.
Representation in a lawsuit involving the cancellation of specific munitions disposal (Company “S,” Company “T,” and others).
Representation in an international arbitration involving procurement contracts (Government, Company “S,” and Company “L”).
Advised on statutory revisions involving relocation of military airbase.
Successfully represented major US company in a product liability litigation involving the crash of an Air Force helicopter.
Advised on real property, human resources and other aspects relating to military base relocation.

Key Contacts

Mergers & Acquisitions Construction International Arbitration Construction Litigation Defense Industry Energy · Natural Resources International Litigation

Jongkwan (Josh) PECK

Senior Foreign Attorney

T +82-2-772-4367

E josh.peck@leeko.com

Government Affairs Administrative Litigation Government Contracts Defense Industry IP Litigation Entertainment Audit & Inspection Start-ups Constitutional Law Disputes Game · Sports · Entertainment AeroSpace

Jongseok LEE

Partner

T +82-2-772-4335

E jongseok.lee@leeko.com

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Recent Developments

Newsletter

DAPA, Reorganing All the Registered Information of Foreign Procurement Sources

2017.01.06