Hanwha Ocean is understood to have been selected for South Korea's KDDX detailed design and lead ship construction program
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Hanwha Ocean Selected for South Korea’s KDDX Destroyer Program
Hanwha Ocean has been selected for the Republic of Korea (ROK) Navy’s KDDX detailed design and lead ship construction program after receiving the higher score in a bid evaluation conducted by South Korea’s Defense Acquisition Program Administration (DAPA).
According to government and industry sources on June 11, Hanwha Ocean outscored HD Hyundai Heavy Industries by 0.5867 points in the evaluation for the KDDX detailed design and lead ship construction.
The KDDX program will deliver six 6,000 ton-class next-generation destroyers for the Republic of Korea Navy under a project valued at approximately KRW 7.8 trillion (US$5.7 billion). The class is intended to combine an indigenous hull design, a domestically developed combat management system, and locally developed core sensors, including its multi-function radar. The detailed design and lead ship construction phase will move the program from design development toward construction of the first ship, making the contract one of the most strategically significant naval shipbuilding awards in South Korea.
Awarding the “detailed design and first ship production” contract to Hanwha Ocean can be seen as unusual: Historically, Hanwha Ocean (formerly DSME) was typically in charge of detailed design and first boat production for ROK Navy submarines, while Hyundai Heavy Industries was typically in charge of detailed design and first boat production for large ROK Navy surface combatants. HD Hyundai Heavy Industries won the basic design contract for KDDX back in 2020 and
completed it in December 2023.
The competition between Hanwha Ocean and HD Hyundai Heavy Industries has been closely watched by the defense industry. A key factor in the competition was a 1.2 point security-related deduction applied to HD Hyundai Heavy Industries. The deduction stems from convictions involving the unauthorized acquisition of KDDX conceptual design materials. Although the penalty had previously been expected to expire in November 2025, DAPA later determined that it would remain in effect until the end of 2026, based on the timing of the final conviction.
Given the reported 0.5867 point gap between the two bidders, industry observers say the deduction may have had a decisive impact on the evaluation outcome.
The result is still subject to review and objection procedures before DAPA formally completes the contractor selection process.
It was delayed by about two years compared to the original schedule. Of course, although the construction of the lead ship has been delayed, the total construction period remains the same, extending through 2036. The government needs to manage competition among manufacturers more wisely.
