Fearing China, South Korea targets contractors on Taiwan navy submarines
By Ju-min Park
SEOUL (Reuters) -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.
In a Feb. 17, 2022 affidavit to a judge seeking the arrest of SI Innotec executive director Park Mal-sik, police said authorities feared a repeat of the sweeping sanctions imposed by Beijing in 2016, after Seoul decided to install THAAD, a U.S. anti-missile system. China agreed to lift those measures in late 2017.
The affidavit said SI Innotec's deal to supply Taiwan with submarine manufacturing equipment «directly impacts the overall security of South Korea» and police, who had consulted with the country's arms sales regulator, were «concerned about a crisis similar to a second THAAD deployment, such as economic retaliation».
The Defense Acquisition Program Administration (DAPA)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.
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.
In the sealed affidavit reviewed by Reuters, police cited China's furious reaction in a 2021 Reuters report about defence contractors and experts from South Korea and six other countries working on Taiwan's submarine program.
SI Innotec, which was fined in August 2022, and Park, who received a suspended prison sentence, deny wrongdoing and have appealed. Through a company lawyer,
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