KAI Refutes “KAI Gate” Allegations Raised by Rep. Park Sun-won as “Groundless Claims”

Reporter Kim Jisun / approved : 2025-10-31 03:34:48
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[Alpha Biz= Kim Jisun] SACHEON, South Gyeongsang Province — October 30, 2025 —
Korea Aerospace Industries (KAI) has strongly denied allegations raised by Democratic Party lawmaker Park Sun-won regarding the so-called “KAI Gate,” calling them “completely baseless.”


During a press conference on October 28, Rep. Park claimed that after authorities began investigating alleged illegal supply dealings among KAI, the Agency for Defense Development (ADD), and the Army Drone Operations Command, KAI issued internal instructions to format or destroy computer data.


KAI responded in a statement on October 30, explaining:

“Under internal regulations, devices that have reached their service life are replaced and discarded, and storage media are kept for up to two years before destruction. In March 2025, a total of 3,185 storage devices were destroyed — long before any drone-related issue arose. The claim that we destroyed PCs to eliminate evidence is entirely false.”


The company added that “all 154 hard drives and data belonging to employees involved in drone-related work remain fully preserved” and that “existing data were safely transferred to new HDDs without any loss or damage.”


Regarding suspicions that KAI created slush funds through irrational equity investments, the firm said:


“All investment funds are legally managed through corporate accounts, and every equity investment must pass at least four internal investment review committees and board resolutions — making such a scheme structurally impossible.”


KAI also dismissed allegations that former CEO Kang Goo-young received preferential advisory fees, saying all payments were “made in accordance with company rules and equally applied to all retiring executives.”


On the claim linking KAI’s FA-50 export contract with Malaysia to a drug-smuggling incident, the company stated:


“The Malaysia deal was achieved through market development and marketing efforts. Any attempt to associate it with narcotics trafficking risks undermining diplomatic trust between the two countries and could create unnecessary confusion that damages the reputation of Korea’s globally recognized defense industry.”


KAI concluded:

“We remain fully committed to the successful development of the KF-21 fighter jet and the stable production of domestic aircraft. We will continue to invest in future projects and expand K-Defense exports, ensuring that recent allegations do not erode market confidence or our corporate image.”

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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