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Economy

CEO of top South Korean military supplier resigns over corruption scandal

Ha of KAI suspected of manipulating costs of helicopter, aircraft development

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Engineers assemble a FA-50, South Korea's first home-built light fighter, at a plant of the Korea Aerospace Industries in Sacheon on August 14, 2013.   © Reuters

SEOUL -- The chief executive of Korea Aerospace Industries, Ha Sung-yong, resigned Thursday amid a corruption scandal in which the state-owned military company is alleged to have manipulated costs for the development of military aircraft by tens of billions of won.

Ha said that he would take responsibility for the wrongdoing and explain what had happened to prosecutors following raids on his car and the company's headquarters earlier this week. KAI's Vice President Jang Seong-seob will take over as acting CEO until the board elects a new leader.

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