A domestic company is confirmed to have used drones imported from China disguised as locally made in an attempt to win an defense contract worth 43 billion won, or around 31 million U.S. dollars.

The Defense Acquisition Program Administration(DAPA) told KBS on Tuesday that the selected company recently admitted to having used the Chinese imports during tests and evaluations for the Army's vertical takeoff and landing(VTOL) drone order.

In May, KBS exclusively reported on related allegations, prompting the state procurement agency, the police and the state customs agency to launch an investigation that included an on-site inspection the following month.

The company had falsely claimed in its bid proposal last January that it had locally designed and manufactured the drone, but in fact it had imported more than four drones from China in early 2023 to secure priority in the bidding.

DAPA is currently reviewing legal action against the company that could strip it of its bidding qualifications and restrict it from participating in the agency's future projects.