Fearing China, South Korea targets contractors on Taiwan navy submarines

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Fearing China, South Korea targets contractors on Taiwan navy submarines
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SEOUL - South Korean authorities cited the risk of Chinese economic retaliation when they charged marine technology firm SI Innotec last year with violating trade laws for its work on Taiwan's new military submarine program, according to a police document seen by Reuters and two people familiar with the matter.

The judge ordered Park's arrest on Feb. 28 on grounds that he posed a flight risk and might destroy evidence, according to a person familiar with the matter. The identities of defence engineering subcontractors Keumha Naval Technology and S2&K, and the charges facing the co-defendants in their closed-door trial, have not been previously reported. Reuters could not determine if geopolitical tensions were discussed in those ongoing proceedings.

Seoul's foreign ministry was"completely against" KHNT's work with Taiwan and signalled its disapproval to DAPA, according to a person familiar with the subcontractor. A police investigator, who spoke on condition of anonymity to discuss ongoing legal matters, said that there was no pressure from Moon's liberal government, which left office in May 2022, to get tough on SI Innotec.Asked by Reuters for comment, a Chinese Foreign Ministry spokesperson accused Taiwan's ruling Democratic Progressive Party of"colluding with external forces". The spokesperson did not address a question on whether Beijing pressed Seoul about the subcontractors.

Taiwan drew on the expertise of retired South Korean naval officers - including managers at SI Innotec and KHNT - who are not required by defence ministry regulations to seek permission before working overseas. The equipment was not designed solely for military purposes and did not involve sensitive technology, SI Innotec told Reuters.

In response to Reuters questions, the subcontractor said it told DAPA it was exporting dual-use goods, which can undergo a self-certification process that the regulator does not oversee. The results of that self certification showed export approval was not needed and DAPA was informed, SI Innotec said."The accused were fully aware that the subject equipment would be used to manufacture a military submarine", the court ruled.

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