The Seoul Transport Corporation has formally accused Daewon Systems, a train manufacturing company, of fraud due to its persistent failure to deliver trains on time, contrary to their contractual agreements. This litigation, submitted to the Suwon Yeongtong Police Station, is grounded in the company's repeated breaches, particularly concerning contracts for new subway trains spanning significant financial commitments. Notably, the company was contracted for the delivery of a total of 210 new train cars for Line 4 and 298 train cars for Lines 5 and 8, which now remain undelivered or delayed beyond acceptable timelines.

Daewon Systems has faced allegations of severe contractual violations as the deliveries for the new Line 4 trains were delayed by over a year, with 10 train cars still outstanding. Additionally, they have failed to deliver any of the ordered cars for Lines 5 and 8, raising concerns about the company’s management and operational capabilities. The latest contract for Line 5 trains has also seen delays, with the initial prototype due earlier this year not delivered, and even basic pre-design stages have reportedly not been completed, suggesting serious lapses in project execution.

Moreover, there are suspicions that Daewon Systems misallocated the advance payments of 657 billion KRW intended for the Line 5 trains. The transport corporation has noted the lack of substantial documentation to justify a significant portion of this pre-payment amount, which has compounded concerns regarding the company's financial practices. As investigations unfold with ongoing audits by the city of Seoul, further legal actions could arise based on the findings of the ongoing financial verifications, indicating potential fraud and mismanagement within Daewon Systems.