LIG Defense & Aerospace (079550.KQ), or LIG D&A, is introducing a vice-president-level oversight structure and replacing the heads of four of its seven business and management divisions.
The company said on the 19th that it is carrying out a company-wide reorganization to refresh its internal culture and expand business at home and abroad. "This is a company-wide reorganization aimed at responding pre-emptively to a rapidly changing management and business environment," the company said, adding that it focused on establishing compliance and internal control functions, strengthening management expertise and expanding into global markets.
The most notable change is the introduction of the oversight system. LIG D&A created the posts of business oversight head and operations oversight head under the chief executive. Park Jong-sung, head of the future strategy division, took the business oversight role, while Cha Sang-hoon, head of the corporate division, took the operations oversight role. The company said the decision was intended to raise business and management expertise and to solidify a compliance-based accountable management system.
LIG D&A also named new heads for four divisions — C5ISR business, corporate support, future strategy and overseas business — a move the company framed as a generational shift.
The company will also set up an in-house compliance audit office to continuously monitor adherence to laws and internal rules. The step is seen as a response to the arrest and indictment of a LIG D&A executive on charges of offering bribes, after allegedly paying hundreds of millions of won to solicit a favorable evaluation during a bidding process for a weapons system development project.
To meet fast-growing overseas demand, the company will also create the post of head of the Europe and Latin America region. Along with the existing Middle East regional post, it plans to pursue tailored strategies centered on local bases to speed up market development and global expansion.
An official at LIG D&A said, "This reorganization is a turning point of renewal and innovation for sustainable growth," adding, "Based on the newly reorganized oversight management and compliance management systems, we will lead the global market, settle future new businesses early and achieve a new leap forward."