SK Construction Raided By South Korean Authorities for Corruption Involving Expansion of US Military Base

The corruption probes and investigations surrounding the expansion of the US military base Camp Humphreys in South Korea continues:

Picture of construction during the Camp Humphreys expansion project.

South Korean prosecutors have raided the offices of one of the nation’s largest conglomerates amid allegations it offered multimillion-dollar kickbacks to the US Army in exchange for construction contracts.

Dozens of investigators were dispatched to the headquarters of SK Engineering and Construction in downtown Seoul on Friday to confiscate computer hard disks, documents and other material related to construction projects at a new US army base in South Korea’s Pyeongtaek county.

The prosecutors are investigating allegations that the company — an affiliate of the nation’s third-largest conglomerate, SK — gave almost $3m to a US army officer in 2010 to steer a $420m dollar construction contract in its favour.

The officer, Duane Nishiie of the US Army Engineers Corp, was indicted in September in Hawaii on charges including bribery, wire fraud and money laundering related to the case. Lee Seung-ju, a former officer in the procurement department of Seoul’s defence ministry, was indicted on the same charges.

SK Engineering and Construction declined to comment. US Forces Korea was not immediately available to comment.

“The raid was needed to look into the bribery claims linked to a US military contract,” the prosecutor in charge of the investigation told the Financial Times.   [The Financial Times]

You can read the rest at the link.

GIKorea

GIKorea

I am a US military veteran that has served all over the world to include in Iraq, Afghanistan, and Korea. I have been blogging about Korea, Northeast Asia, and the US military for over 10 years.

3 Comments

  1. Well you knew this was going on, bribery, kickbacks, charging for quality material while using cheap stuff (witness 8th Army HQ’s leaky roof). roll

    See more construction delays for the Hump.

  2. I wonder how much money was siphoned from the PX construction.

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