The decision by the Ministry of Trade, Industry and Energy on Monday effectively doubles the pool of qualified bidders for the Korean Destroyer Next Generation (KDDX) program, an 8 trillion won ($5.4 billion) project to develop the Navy’s future warships.
The ministry dismissed HD Hyundai’s claim to exclusive rights to the contract, marking a break from the long-standing practice of awarding the full project - from detailed design to construction - to the basic design contractor.
The competition carries historical baggage. In 2019, HD Hyundai employees were convicted of stealing classified naval vessel data from what was then Daewoo Shipbuilding & Marine Engineering - now Hanwha Ocean - during a failed acquisition attempt.
“If not for that incident, the selection of the basic design contractor might have played out differently,” a Hanwha Ocean official said, defending the company’s bid for a larger role in the project.
The Defense Acquisition Program Administration (DAPA) will now oversee a tender in which the two firms may either collaborate on the detailed design and construction of the first destroyer or compete for sole execution rights.
Shipbuilders have already voiced concerns over delays of more than a year, with the completion of the first vessel seen as crucial for awarding contracts for up to six additional ships.
Beyond the KDDX competition, both Hanwha Ocean and HD Hyundai are reportedly positioning themselves for high-value U.S. naval maintenance and repair contracts, an area of renewed interest under President Donald Trump.
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