Hanwha Ocean has allegedly been selected by South Korea’s Defence Acquisition Program Administration (DAPA) as the preferred shipbuilder for the Republic of Korea Navy’s (ROKN) KDDX next-generation destroyer programme.
Citing industry sources, local media outlets including The Korea Herald and The Korea Times reported that DAPA has completed its evaluation of proposals submitted by Hanwha Ocean and HD Hyundai Heavy Industries (HHI). It reportedly informed both companies of the outcome in mid-June.
According to these reports, Hanwha Ocean outscored HHI by 0.5867 points.
In fact, HHI had been given a 1.2-point penalty relating to a security breach involving the KDDX programme. Several HHI employees were convicted between 2022 and 2023 for illegally obtaining and leaking conceptual design documents associated with this project.
The result suggests that, absent the penalty, HHI would have emerged as the preferred bidder. However, the programme had lain in limbo while the legalities were sorted out and a new government felt able to proceed with the KDDX project.
Valued at approximately KRW7.8 trillion (US$5.1 billion), the KDDX programme covers the construction of six 6,000-tonne destroyers, with all vessels expected to be delivered by 2030.
The KDDX represents South Korea’s effort to field a largely indigenous destroyer fleet. Unlike existing Aegis-equipped destroyers already in service, the new class will incorporate domestically developed combat systems, including active electronically scanned array radars, integrated combat management systems and indigenous surface-to-air missile interceptors.
The programme is viewed as a key milestone in Seoul’s drive to strengthen sovereign naval capabilities, and also to reduce dependence on foreign technologies for major surface combatants.
The ROKN currently operates four Sejong the Great-class Aegis destroyers (three of which were built by HHI). These include three Batch I and one Batch II destroyers. Two additional vessels are under construction as part of the Batch II effort.
This KDDX award marks another significant development in the increasingly competitive rivalry between Hanwha Ocean and HHI for major naval shipbuilding contracts at home and abroad.
Hanwha Ocean has been steadily expanding its presence in both domestic and export naval markets, securing contracts for auxiliary vessels and surface combatants in recent years. It is also targeting significant submarine acquisition programmes worldwide, such as Canada’s.
by Chen Chuanren
