Korean LIG Nex1 Eliminated From Romanian Air-Defense Tender due to “Paperwork Error”

Korean defense firm, LIG Nex1 has been eliminated from a Romanian procurement project to acquire short-range air defense systems due to a “paperwork error” and has filed an appeal.

“LIG Nex1 filed the appeal with the National Council for Solving Complaints (CSNC), Romania's administrative body that resolves complaints about public procurement,  on Dec. 16, after having been eliminated from the second-stage tender offer for the country's short-range air defense (Shorad) and very short-range air defense (Vshorad) systems earlier this month,” koreajoongangdaily Daily reported.

The paperwork error that led to the elimination from the estimated 2 to 3 trillion won ($1.38 billion-$2.07 billion) project involved the filing of a receipt for a 1 percent bidding initiation deposit worth reportedly around $4.2 million, the sources said.

IG Nex1 has also argued it was subject to unequal treatment during bid meetings, claiming delegations from competitors were comprised of three to four people, whereas the Korean company was obligated by the bidding rules to have a maximum of two people per company at pre-bid negotiations.

According to LIG Nex1, MBDA and Diehl Defence were represented by delegations of four people. Rafael Advanced Defense Systems had three representatives.

A LIG Nex1 spokesperson in Seoul confirmed the company's elimination from the bidding, explaining there were "differing opinions between parties regarding the submission of documents."

"The objection process established by the managing organization (CSNC) is currently underway," the company official added.

Romania, a NATO member state of the North Atlantic Treaty Organization, has earlier had relations with Korean defense companies.

LIG Nex1 signed an agreement with Romarm, Romania's state-run defense company, in February 2023 to cooperate in the development and production of portable short-range anti-aircraft missiles.

Another Korean firm, Hanwha Aerospace signed  a 1.38 trillion-won deal in July 2024 to supply weapons, including K-9 self-propelled howitzers, to Romania.