Posted on 02/21/2011 7:38:13 AM PST by sukhoi-30mki
Jet sale to Indonesia may crash after break-in
February 22, 2011
Concerns grew in Seoul yesterday that the reported involvement of Korea’s spy agency in data theft from a visiting Indonesian delegations could derail the Lee Myung-bak administration’s attempt to land a lucrative defense export contract.
A high-powered Indonesian delegation, which included the defense minister, made a three-day visit last week, and local media reported yesterday that the National Intelligence Service was behind a Feb. 16 break-in of a delegation member’s Lotte Hotel room, from which a laptop was temporarily taken. Seoul denies the agency was involved.
Since his inauguration, Lee has focused on two key export programs: Korea’s nuclear power generation technology and its supersonic advanced trainer jets. While Seoul succeeded in exporting a nuclear reactor project to the United Arab Emirates last year, no progress has been made in exports of T-50 Golden Eagle trainers. Korea has tried to sell the jets to the UAE and Singapore, but have not succeeded. Indonesia was a third possible buyer.
“We thought the deal to export T-50s [to Indonesia] was almost clinched this time,” a senior military source said yesterday. “I guess the NIS people probably felt very much under pressure.”
Another senior government official said the spy agency, foreign ministry and defense ministry were under pressure as the T-50 export project was not going smoothly. “Because the president was highly interested in the project, the stress was heavy,” he said.
Lee was the most enthusiastic promoter of the project. During his visit to Indonesia in December, he had a summit with President Susilo Bambang Yudhoyono and agreed to expand cooperation in defense industries, paving the way for the T-50 exports.
Last week’s visit by the special delegation from Jakarta to discuss Korea’s support for Indonesian economic development was also seen as a positive sign until the break-in took place.
Lee gave special attention to the delegation, providing his airplane and helicopter to them.
Seoul officials are now confused about the circumstances.
“The room that was broken in belonged to a working-level official who probably carried no confidential defense information,” said another senior official. “The NIS derailed a project that was going very well with unnecessary action.”
Built by Korea Aerospace Industries, the T-50 Golden Eagle carries a price tag of 24 billion won ($21 million). Because it was up to 20 percent more expensive than competing models from Italy and Russia, Korea’s export efforts have faced difficulties.
Seoul and Jakarta tried to calm fears of diplomatic repercussions.
“Korea and Indonesia have long maintained a friendship, and their intelligence authorities have worked together closely,” said a former senior official of the National Intelligence Service. “The case will likely be resolved after the NIS tacitly seeks Jakarta’s understanding and Indonesia accepts it.”
By Ser Myo-ja,Kim Su-jeong [myoja@joongang.co.kr]
Oopsie. Thanks sukhoi-30mki.
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