Defense Acquisition Program Administration notifies company Wednesday

Program to build six 7,000-ton-class domestic Aegis-type destroyers

'We feel a weighty sense of responsibility,' company official says

A concept rendering of Hanwha Ocean's KDDX destroyer. [Hanwha Ocean]
A concept rendering of Hanwha Ocean's KDDX destroyer. [Hanwha Ocean]

Hanwha Ocean has been selected as the preferred negotiating partner for the detailed design and lead-ship construction of the Korean Next-Generation Destroyer, or KDDX, a program valued at 7.8 trillion won ($5.04 billion). With the project already delayed by more than two years, the company said it will draw on its advanced technological capabilities to bring the KDDX into service on schedule.

According to a disclosure filed with the Financial Supervisory Service's DART system Thursday, Hanwha Ocean said it was notified Wednesday by the Defense Acquisition Program Administration that it had been chosen as the preferred negotiating partner for the KDDX detailed design and lead-ship construction project.

DAPA launched a competitive tender in March and evaluated proposals from the two bidders — Hanwha Ocean and HD Hyundai Heavy — through on-site inspections and technical assessments. On June 11, DAPA notified both companies that Hanwha Ocean had come out ahead in the proposal evaluation. The margin between the two firms was reported to be approximately 0.59 points.

The outcome turned on a security penalty applied to HD Hyundai Heavy. The company received a 1.2-point deduction after its employees were convicted of photographing and leaking classified military information related to the KDDX program. HD Hyundai Heavy filed an objection to the evaluation results, but DAPA reviewed and dismissed the challenge, confirming Hanwha Ocean's selection on Wednesday.

DAPA said that following the release of the evaluation results, it conducted debriefings for both companies and reviewed the objection in accordance with relevant regulations and procedures, ultimately confirming that the evaluation contained no irregularities. "We have notified each company of the preferred negotiating partner and the order of negotiating priority," a DAPA official said, adding that negotiations with the top-ranked company would proceed. The official also said the agency would "pursue the project fairly and lawfully in accordance with applicable laws and regulations" and pledged to "do its utmost to ensure the fielding schedule proceeds without disruption."

The KDDX program aims to procure six 7,000-ton-class destroyers using domestic technology, making it South Korea's first homegrown Aegis-type warship construction project.

Hanwha Ocean said its work on the KDDX concept design phase had established the technological foundation for an advanced warship, including an integrated electric propulsion system, an integrated mast, an integrated network architecture and manpower-reduction automation technology. The company said it had also pursued continuous research and investment in next-generation warship development — including novel ship designs and studies to improve vessel survivability — in preparation for the detailed design and lead-ship construction phase.

Last year, the company unveiled a "next-generation strategic surface combatant" integrating its latest smart-ship technologies. Hanwha Ocean developed the vessel's basic design in-house and obtained approval in principle from Lloyd's Register of the United Kingdom. The concept incorporates a manned-unmanned teaming combat system, a laser cannon and a multi-layered defense system using loitering munitions, along with automation and unmanned technologies designed to optimize crew size while maximizing combat efficiency and operational endurance.

The company said these capabilities position the KDDX to become a world-class destroyer on par with the leading naval vessels of advanced navies. "We feel a weighty sense of responsibility at being selected as the preferred negotiating partner for the KDDX detailed design and lead-ship construction project," a Hanwha Ocean official said. "We will engage sincerely in negotiations with the government and do our utmost to normalize the project, backed by our advanced warship technology and project execution capabilities."


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