S. Korea investigating fraud allegations involving U.S. defense firm: officials

By Sam Kim

SEOUL, Oct. 15 (Yonhap) -- South Korea is investigating suspicions that a U.S. defense firm may have sold to its Navy second-hand air search radars disguised as new ones, defense officials said Thursday.

An official at the firm's Seoul office said her company has yet to check the
local newspaper report which said used radars were sold from 2003-2005 and
installed on three South Korean destroyers.
Officials at the Ministry of National Defense confirmed that an investigation was
under way based on tip-offs that the Navy may have been defrauded in the deals
that amounted to nearly US$30 million.
"Allegations have been presented to us, and we're checking to see if there is
reasonable ground for them," one official said, speaking on condition of
anonymity citing the sensitivity of the case.
The report by Seoul Shinmun said the Navy identified a performance flaw in the
radars used on KDX-II destroyers and suspect that parts may have been "recycled."
But the ministry officials said clear evidence confirming the suspicions has not
yet surfaced during the investigation so far.
If found true, the allegations could undermine ties between the South Korean
government and the firm which has supplied Seoul with other prominent defense
systems.
samkim@yna.co.kr
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