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Assan Group Scandal: Espionage, State Takeover in Turkish Defense

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By ThePip Desk•
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A stack of official documents in Turkish and a blueprint of a metal component lie on a wooden desk.

Official documents and a technical drawing on a wooden desk

Key Highlights

Turkish defense giant Assan Group faces espionage charges, leading to owner/CEO arrest and state takeover. Highlights governance concerns in a vital sector.

Turkish Defense rocked by Assan Group Scandal

The Turkish defense industry, a rapidly growing hub, faces a significant corporate crisis. Assan Group, a key player in ammunition and missile components, saw its owner and CEO arrested in August 2025 on military espionage charges.

Espionage Charges and State Intervention

Emin Öner, Assan Group’s owner, and Gürcan Okumuş, its CEO, were arrested by the Istanbul Chief Prosecutor’s Office. They faced charges of military espionage and illegally obtaining state security documents.

  • The investigation alleged unauthorized access to confidential documents from state institutions, including MKE and TÜBİTAK SAGE.
  • Öner was also investigated for alleged ties to the Fethullah Gülen movement, designated a terrorist organization by Turkish authorities.
  • Prosecutors sought a prison sentence of 17 years and 6 months to 36 years for Öner.
  • Assan Group representatives denied the accusations, claiming documents were legally obtained production schedules.

Following the arrests, Turkish authorities placed Assan Group under trusteeship. The Savings Deposit Insurance Fund (TMSF) took control of ten affiliated companies.

Assan Group Set for Sale at $416.5 Million

This state action, similar to measures taken post-2016 coup attempt, aimed to ensure business continuity and protect strategic defense production capabilities. In June 2026, TMSF announced the sale of Assan Group as a “Commercial and Economic Entity.”

  • The company is valued at USD 416.5 million.
  • The comprehensive sale package includes real estate, production machinery, technical equipment, trademark rights, and existing commercial agreements.

Implications for Türkiye’s Defense Industry

The scandal, while serious, demonstrated the resilience of the Turkish defense industry, as production continued without collapse. However, it highlighted critical challenges for the sector:

  • The need for stronger mechanisms to protect classified information.
  • Better regulation of personnel movement between state and private defense entities.
  • Robust corporate governance and increased transparency to maintain foreign investor confidence.

Türkiye’s future competitiveness in international markets will depend on its ability to balance state security with an attractive environment for investment and innovation.