Fearing China, South Korea targets contractors on Taiwan navy submarines
© Reuters. FILE PHOTO: Taiwan's President Tsai Ing-wen attends the launching ceremony of Narwhal, its first domestically built submarine, in Kaohsiung, Taiwan September 28, 2023. REUTERS/Carlos Garcia Rawlins/File Photo
The Defense Acquisition Program Administration regulator had told an unidentified subcontractor that the government had"export concerns" regarding Taiwan, and"takes a very cautious stance" on such approvals, the affidavit said. In a sign of a broader crackdown, two other South Korean companies that allegedly supplied Taiwan were also charged in November with breaking trade laws, and one of their chief executives was accused of industrial espionage, according to court records and four people familiar with the matter.
The SI Innotec affidavit and interviews with seven people with military, shipbuilding and legal ties show how political considerations about an economic rupture with China, Seoul's largest trading partner, have weighed on South Korea's investigations into the three companies. The people spoke on condition of anonymity to discuss ongoing legal proceedings with national security implications.
The foreign ministry said it was aware the trials were underway and referred detailed questions to DAPA. DAPA said it follows the law when making decisions on exports, but had no further comment. Many military experts say that an expanded Taiwanese submarine fleet could complicate a potential invasion by Beijing. U.S. officials, however, warn that such assets should not come at the expense of smaller weapons that would help Taiwan wage"asymmetrical warfare" against China's far-larger arsenal.
In 2019, SI Innotec agreed a deal with Taiwanese shipbuilder CSBC to supply and install $12 million in welding and assembly equipment for submarine pressure hull manufacturing, according to contracts presented at trial. In April 2020, DAPA suggested SI Innotec check with it whether the equipment could be categorized as military goods and require export approval, according to court documents.
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