Samsung SDS Co., Ltd. obtained and completed an order for the C4I improvement project from the ROK’s Defense Acquisition Program Administration (“DAPA”). However, the DAPA refused to pay about KRW 7.4 billion (approximately USD 5.6 million), which was equivalent to the liquidated damages, citing delivery delays.
Accordingly, Samsung SDS filed a lawsuit against the ROK to claim full compensation for service fees.
In this lawsuit, fierce arguments continued over who was responsible for the delay in delivery. A detailed understanding of the C4I improvement project and its relevant technologies was required to discuss the responsibility for the delay as the project integrated a wide range of highly advanced technologies. DR & AJU proved in various ways that the liability of the delivery delay was on the DAPA and successfully persuaded the court of first instance that the DAPA was responsible for the delay, not Samsung SDS. The ROK appealed the decision, DR & AJU represented Samsung SDS in the appellate trial and prevailed in court on May 25, 2022. The ROK decided not to pursue a third trial, confirming Samsung SDS's victory.
