South Korea has selected Hanwha Ocean and HD Hyundai Heavy Industries to compete for the primary contractor role on the Korean Next-Generation Destroyer (KDDX) program.
The KDDX is an 8-trillion Korean won ($5.5 billion) effort to develop up to six stealth guided-missile warships for the Republic of Korea Navy through the 2030s.
The decision was approved through an extensive review of the companies’ industrial capabilities needed for the initiative, including production capacity and associated security requirements.
The process involved an on-site inspection led by the Defense Acquisition Program Administration in partnership with the navy and other defense sub-agencies.
Benchmarks were based on Seoul’s Defense Acquisition Program Act assessment standards.
“Now that the designation of the KDDX defense contractor has been completed, the method of promoting the KDDX project, including the selection of the contractor, will be decided after deliberation by the Defense Acquisition Program Administration Promotion Committee,” a statement from the Ministry of Trade, Industry, and Energy said.
Hanwha and Hyundai have already participated in the early phase of South Korea’s KDDX program, particularly in the conceptualization process.
In 2012, Seoul awarded Hanwha a contract to provide an initial design of the future destroyer. Hyundai then received a follow-on design transaction in 2020.
In the East Asian country’s previous naval works, the organization that led the basic design was also awarded the detailed design transaction as well as the vessel’s overall construction.
This caused Hyundai to petition the South Korean defense agency’s approach in designating another contractor, specifically Hanwha, for an already established shipbuilding “tradition” practiced since the early 2000s.
In retaliation, Hanwha also applied to be the primary contractor of the KDDX program and accused Hyundai of leaking its confidential data related to the effort’s bid.
The heat between the companies calmed last year, with both citing the importance of domestic interoperability and competitiveness amidst “China’s aggressive investments in the global markets,” an update from The Korea Herald said.
It was also reported that the cooperation was driven by a plan between the consortium’s executives to “explore emerging business opportunities” alongside the re-election of US President Donald Trump.
The incoming KDDX-class destroyer will measure about 155 meters (509 feet) long.
It is expected to sail with two gas turbine generators and three diesel generators, as well as a 25-megawatt electric motor.
The ship will be fitted with Hyunmoo land-attack cruise missiles, SSM-700K anti-ship missiles, lightweight anti-submarine torpedoes, naval guns, and close-in weapon systems.
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