BAI: Large-scale corruption of KUH program, known as the “Masterwork Helicopter,” with KAI’s unjust enrichment of KRW 54.7 billion

KAI allegedly took unjust enrichment of approximately KRW 54.7 billion in the KUH (Surion) development program (KRW 1.3 trillion) by fabricating cost accounting documents. Until now, KAI played an intermediary role for receiving investment recoupment fees from DAPA and relaying it to the KAI partners, along with KAI responsible for 20% of the overall investment for the KUH development. KAI fabricated cost documents to look as if it was the sole investor of 20% of the overall investment amount and unjustly received KRW 23 billion from DAPA. KAI also unjustly received KRW 31.7 billion from DAPA, which was for the foreign industrial partner that transferred core technology. Even though DAPA’s internal audit in 2012 pointed out that the payment made to KAI was unjust, it was found that DAPA dismissed the audit result.

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