The Price of Justice

While Taesik was continuing his cooperation regarding North Korean drones, he was startled by news coming from the Blue House. As criticism mounted against the Ministry of National Defense and its North Korean policy, the Blue House claimed that the military had failed to properly respond to North Korean drones due to defense industry corruption, and that the air defense network had been breached because of such graft. They declared their intention to eradicate all defense industry corruption.

Brigadier General Jang Woo-chul called Taesik to ask for his understanding. "Representative, I am sorry. The development of the long-range radar and laser weapons we were working on to counter North Korean drones has been completely suspended."

"Is this because of the Blue House?"

"Yes. We received orders to begin development only after the Board of Audit and Inspection finishes its investigation into defense industry corruption. We have to halt all weapon development plans we had with you."

"It can't be helped. There is no need to fan the flames when the wind is already blowing. Please don't worry about it too much."

After ending the call with Brigadier General Jang, Taesik immediately called Starlink Defense and Starlink Aerospace. "President Park In-tak, what is the atmosphere like at Defense?"

"Don't even ask. A massive investigation team from the Board of Audit and Inspection and the Defense Acquisition Program Administration has arrived, and they are auditing the weapons we've developed so far. They are demanding absurd data, claiming we committed cost fraud and falsified development specifications."

"For now, comply with the government's demands, and if you anticipate any attacks against us, call me immediately."

"Understood, Representative."

Starlink Aerospace had not yet been visited by government officials, but they had been notified that they would be audited once the investigation at Defense was complete. Taesik gave the same instructions and hung up.

Two weeks later, Taesik received a call from President Jo Yoon-je of Starlink Aerospace and wore a bewildered expression. "What? You're saying they are pointing out issues with the cost of the exported T50 aircraft?"

"Yes. They are raising issues regarding the T50s we exported at a lower price than what we supplied to the Air Force. The Board of Audit and Inspection thinks we are reaping unfair profits from domestic projects."

To build up export records for the T50, Starlink Aerospace had exported the aircraft at a lower price than the domestic rate with the help of partner companies. The Board of Audit and Inspection argued that the company could have lowered costs for domestic projects as well, and that they had therefore gained unfair profits. President Jo Yoon-je had proceeded with the lower export price, believing that due to the nature of the aviation business, profits could be made through maintenance parts even if the initial export price was low.

"What does the Board of Audit and Inspection intend to do?"

"They say they will report Starlink Aerospace to investigative authorities for gaining unfair profits."

"Since the Board of Audit and Inspection needs to show results, it's meaningless to argue with them now. Just convey our position that we cannot accept the audit results and that we will continue ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠the dispute in court."

"Understood. Our staff members are already working hard to reduce the audit findings, but I suppose we have to accept it as is."

"And if the Board of Audit and Inspection inflates the scale of the 'unfair profits,' just leave it alone."

"Yes...? Wouldn't that create a negative perception of Starlink?"

"If they say we gained unfair profits, we can just pay the amount to the government and resolve it through a lawsuit. Do you know how much the legal interest is if we win the case?"

"I'm not very familiar with legal interest..."

"We can get back up to 15% of the money we paid as legal interest. Why don't you try some 'interest business' for once?"

"Representative, making money is important, but I'm worried about the critical view of the public. Will it be okay?"

"Of course. Once we win in court later, everything will be resolved."

The Board of Audit and Inspection found nothing significant at Starlink Defense, but as feared, they announced that Starlink Aerospace had gained unfair profits. They held a briefing claiming that the company had inflated the costs of T50-series aircraft parts supplied to the Air Force to gain 250 billion won in unfair profits. They demanded that the Defense Acquisition Program Administration immediately claw back the funds and argued that Starlink should be designated as an 'unfair firm' to block them from government bids. Based on the audit results, the Defense Acquisition Program Administration issued an administrative order for Starlink to return 250 billion won. Taesik deposited the money into the national treasury without a word and immediately filed a lawsuit.

After the briefing, the media reported that Starlink Aerospace had "gobbled up" 250 billion won of the public's tax money, adding that Starlink had recently seen tremendous growth in the defense sector. They added that this growth included cost fraud and that the misconduct had been revealed by the audit results. Following the briefing, public complaints and criticism poured out, though some argued that lowering costs for exports was a matter of corporate freedom and not a problem.

Taesik and President Jo Yoon-je released a statement declaring that they could not accept the audit results and would fight the issue of unfair profits in court. Watching the comments on the news regarding the audit results, President Jo asked, "Representative, there are so many negative comments. Are you sure this is okay?"

"It doesn't matter. There's nothing to gain from fighting the Board of Audit and Inspection and the media. It is more efficient to fight in court and inform the public of the results. Have you finished hiring a law firm?"

"Yes. Since the amount to be clawed back is substantial, many firms wanted to take the case, so we selected one easily."

"Let's enter the lawsuit ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠immediately."

Starlink Aerospace selected a law firm and began the legal proceedings. The media continued to report on Starlink's ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠refusal to accept the audit results. Once the trial date was set, both sides presented their arguments. Starlink argued that the low export price was a cost-saving measure to expand exports, which was the company's right, while the government side claimed that Starlink had deceived the government by falsifying costs to gain unfair profits. After hearing both sides, the court set a final judgment date. Park In-tak and Taesik visited the court to hold a media briefing after the verdict.

The judge asked the Starlink attorney, "Does Starlink admit that the costs applied to the Air Force supply and the export supply were different?"

"Yes, we admit it. Starlink admits that we set the costs at a lower price to gain a competitive edge against rival models from other countries for the T50 export. We declare that this was an economic act to gain profit through maintenance parts after exporting at a lower price, and we had no intention of deceiving the government."

"The government side views Starlink's different cost calculations for domestic and export use as deceiving the government and gaining unfair profits, correct?"

"Yes, that is correct."

The judge, having heard both sides, brought the microphone close to deliver the final verdict.

"It is acknowledged that Starlink Aerospace set different costs for domestic and export aircraft. The domestic costs were set according to the Defense Acquisition Program Administration's rules on defense industry price calculations, and no evidence was found to suggest problems with the calculations made by the DAPA officials."

"..."

"Furthermore, it is acknowledged that the plaintiff set the costs lower than domestic prices to promote exports, and it cannot be recognized that a loss occurred to the national treasury based on the fact that export costs were set low. Therefore, as there was no error by public officials and no loss to the national treasury, the plaintiff's debt regarding the return of unfair profits does not exist. The plaintiff's claim is accepted as it has merit."

Though the legal terminology was complex, the court recognized that Starlink had no unfair profits and no debt to the government. The attorneys and Starlink employees cheered, overjoyed at the victory. President Jo Yoon-je, seeing the victory just as Taesik had promised, immediately said, "Representative, we won. We are not an unfair firm."

Because Starlink Aerospace had been designated as an unfair firm, they had been unable to participate in government bids, which caused difficulties given that the government was their primary client. President Jo grabbed Taesik's hand, happy that the designation would finally be lifted.

"I told you we could win the trial..."

"I thought ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠we could, but it feels great to actually win. How fortunate that we can now proceed with government contracts."

"More importantly, we need to do a media interview. Reporters are waiting outside the courtroom, so let's proceed immediately."

President Jo and Taesik headed out to where the reporters were waiting. As they arrived, the reporters fired questions. "How does it feel to win the trial after being branded a corrupt company?"

President Jo replied, "To be precise, it was the Board of Audit and Inspection's claim that we gained unfair profits, not that we were a corrupt company. We have been recognized by the court as having no unfair profits."

"With this victory, I understand that the unfair firm designation will be lifted and new business and contracts are possible. What is the first thing you will do?"

"The new Iraqi government wants to export T50 aircraft for pilot training. Once we shed the stigma of cost fraud, we intend to begin exports immediately."

"What is the expected quantity of aircraft to be exported to the Iraqi government?"

"Negotiations are still underway, and we need to proceed with them to determine the exact quantity."

"With this victory, Starlink Aerospace will receive the 250 billion won principal along with legal interest. I am curious about how you will use it."

When a question came up that was difficult for President Jo to answer, Taesik stepped in. "With this victory, Starlink Aerospace will receive 37.5 billion won in legal interest, which is 15% of the principal. We intend to pay the entire amount as an incentive to the Starlink Aerospace employees who worked hard on the aircraft development."

The reporters, thinking they had good headlines, tapped away at their laptops and continued with additional questions. That evening, the reporters published breaking news that delighted the Starlink employees.

The news of Starlink Aerospace's victory spread through internet articles and broadcasts. The fact that there was no cost fraud, along with the news that 37.5 billion won of taxpayer money had been wasted due to the Board of Audit and Inspection, covered the portal news sites. President Jo Yoon-je eventually concluded final negotiations with Iraq, securing a contract worth 2.1 billion dollars to export 24 T50 advanced trainers, and additionally won a contract to build an Air Force base suitable for the T50 aircraft. The internet was filled with praise for the highest export amount in history, and major conglomerates began lobbying Starlink to win the 1 trillion won construction contract for the Iraqi Air Force base.