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Defense Industry/National Defense Procurement

Defense industry started from the viewpoint of securing military forces to ensure national security and at present becomes another important axis of national economy beyond its character as security industry and continues to develop into an industry driving economic growth and creating employment. Defense industry is a special area combining cutting-edge science and technology and the national defense and industrial policies, requiring thorough understanding of the applicable provisions along with vast experience and knowledge in actual implementation and application of the policies and the laws.

The Defense Industry Practice Group of Bae, Kim & Lee LLC consists of advisors having worked for the Ministry of National Defense, the Defense Acquisition Program Administration, the Ministry of Strategy and Finance and the Ministry of Governmental Legislation, lawyers having advised various clients and represented various litigations in the defense industry and lawyers having accumulated vast experience and personal networks through working with the administration for a long period in charge of national contracts and interpretation of laws.

Based on the capability, the Defense Industry Practice Group of Bae, Kim & Lee LLC has successfully advised businesses engaging in defense industry and national defense procurement, represented clients litigation involving these areas, and advised on international transactions in the defense industry,the importance of which has continued to grow.

A. Defense Industry Policy and System

Defense industry policy and system are an area to which national defense policy and industrial policy generally apply at the same time, and Bae, Kim & Lee LLC has advised the Defense Acquisition Program Administration in charge of defense industry about various policies, laws and regulations, and is creating its system of providing systematic advice on interpretation of the current laws and decrees as well as enactment and amendment of the existing laws relevant to the defense industry.

B. Defense Industry and National Defense Procurement Business

Business procedures of the defense industry and the national defense procurement are affected by relevant laws and the administrative rules of the Ministry of National Defense and the Defense Acquisition Program Administration, and thus these procedures are different from general procurement procedures in respect to relevant areas such as bids, contract conclusion, and ex post facto management. Bae, Kim & Lee LLC has an effective system in place to handle matters involving defense industry and national defense procurement, with lawyers having successfully advised and represented clients in those areas and with attorneys of counsel having thorough knowledge in relevant matters.

C. International Transactions

International transactions in the defense industry, such as import of cutting-edge weapons and export of domestic defense articles, require expertise of regulations in Korea—concerning import/export of defense articles—and concerned countries and experience therein. The Defense Industry Practice Group of Bae, Kim & Lee LLC has conducted international transaction works in various areas including the defense industry and has the system in place which makes it possible for the Group to provide the most efficient legal advice in cooperation with other regional expert lawyers within the Firm.

D. Litigation

Bae, Kim & Lee LLC gained reputation for its successful representation of clients in litigations, with no exception in the defense industry and the national defense procurement. This is based on our efficient litigation representation system built within our firm and experiences in litigations for a long period. With respect to civil, criminal and administrative litigations arising in the national defense industry, the Defense Industry Practice Group can provide the highest caliber legal service.
Major Cases
    A. Representative Cases of Litigation

    • Won dispute relating to bidding for SSU submarine in representation of HHI

    • Won dispute relating to bidding for KDS-III 1 in representation of HHI

    • Won case claiming for the building price of KSS-II submarine in representation of HHI (the default interest was exempted)

    • Dispute over liquidated damages involving the project for performance improvement of P-3 aircraft of the navy

    • International arbitration in relation to development of parts for the Polish hell manufacturer.

    • Won the suit for liquidated damages involving PKG-A 1

    • Dispute relating to production cost fraud of munitions maintenance company

    B. Representative Cases of Legal Advisory Services

    • Advised on exemption of default interest in connection with Chollian system business of the 2nd MCRC

    • Advised on postponement of delivery of SAADS for Chollian business and reduction of default interest

    • Advised on adjustment of taxes on income arising from building of destroyers and submarines

    • Advised on the Polar Star project (replacement of the obsolete MCRC)

    • Advised on movement of the U.S. Army’s CH2M Hill base

    • Advised on movement of the U.S. Army’s Yongsan base

    • Advised on the Air Force’s tactical C41 system project

    • Advised on D’s acquisition of a defense-related company

    • Advised on the bidding process for the F-X fighter program

    • Advised on a private contract in relation to the patent of defense articles