South Korea is set to advance its naval capabilities with the selection of Hanwha Ocean and HD Hyundai Heavy Industries as the competing contenders for the primary contractor role in the ambitious Korean Next-Generation Destroyer (KDDX) program. This major initiative, estimated to cost approximately 8 trillion won (around $5.5 billion), aims to develop a fleet of up to six stealth guided-missile warships for the Republic of Korea Navy by the 2030s.
The announcement from the Ministry of Trade, Industry, and Energy (MOTIE) followed a rigorous review process assessing the industrial competencies of both companies, particularly their production capacities and compliance with security requirements. This evaluation included an on-site inspection coordinated by the Defense Acquisition Program Administration (DAPA), alongside checks from the navy and other defense sub-agencies. The selection criteria were aligned with the standards stipulated in Seoul’s Defense Acquisition Program Act.
In a statement, MOTIE elaborated on the selection process: “Based on the on-site inspection team’s inspection results and the Defense Acquisition Program Administration’s security measurement results, the Ministry of Trade, Industry and Energy held a final discussion with the Defense Acquisition Program Administration, designating the two companies as defense contractors and notifying them of the final decision.” The statement further outlined that the methodology for advancing the KDDX project, including the contractor selection, will be determined after discussions by the Defense Acquisition Program Administration Promotion Committee.
Both Hanwha and Hyundai have been integral to the KDDX program’s initial stages, particularly in the conceptual design phase. Hanwha was awarded a contract in 2012 for the initial design of the destroyer, and in 2020, Hyundai received a subsequent contract for the follow-on design. Traditionally, in South Korea’s naval projects, the company responsible for the basic design is also tasked with the detailed design and overall construction of the vessels. However, this customary practice faced challenges when Hyundai raised concerns regarding the defense agency’s decision to designate another contractor, specifically Hanwha, for roles that traditionally would have remained with the principal designer.
In a notable turn of events, Hanwha responded by seeking the role of the primary contractor for the KDDX program and accused Hyundai of mishandling confidential information related to the bidding process. Despite earlier tensions, the rivalry seemed to ease last year as both companies recognized the necessity of domestic cooperation and competitiveness in light of China’s rising investments in global markets. Reports have suggested that their cooperation may also be strategically linked to business opportunities, particularly during the period of former U.S. President Donald Trump’s re-election campaign.
The future KDDX-class destroyer is projected to measure around 155 meters (509 feet) in length and will be equipped with advanced systems, including two gas turbine generators and three diesel generators, complemented by a 25-megawatt electric motor. The vessel will be armed with a suite of sophisticated weaponry, including Hyunmoo land-attack cruise missiles, SSM-700K anti-ship missiles, lightweight anti-submarine torpedoes, naval guns, and close-in weapon systems, further enhancing South Korea’s naval defense capabilities.
