The decision was made in a meeting of the agency on March 7, after one month of screening on applications submitted, the agency said.
The new submarines will bring the total number of Chang Bogo class submarines operated by the Navy to 18, according to Navy officials.
The agency said Hyundai will build a 1,800-ton, upgraded version of the 1,200-ton Chang Bogo submarine in technological partnership with Germany's ThyssenKrupp Marine Systems (TKMS). The 1,200-ton submarine was built by Daewoo Shipbuilding and Marine Engineering.
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