South Korea Breaks Stalemate on $5 Billion Destroyer Project with New Bidding Rules
South Korea's DAPA has decided on a selective bidding process for its ₩7 trillion ($5B) next-gen destroyer project, aiming to end a stalemate caused by a legal feud between Hanwha Ocean and HD Hyundai.
Key Takeaways
South Korea’s arms procurement agency has finalized a “selective bidding process” for its ₩7 trillion (US$5 billion) next-generation destroyer program. The decision aims to restart the critical naval project, which had been stalled by a protracted legal dispute between the nation’s two largest shipbuilders, Hanwha Ocean and HD Hyundai Heavy Industries.
SEOUL – South Korea's state arms procurement agency will introduce a selective bidding process to pick a shipbuilder for its first homegrown advanced destroyer, officials announced Monday. The decision aims to break a deadlock that has stalled the estimated ₩7 trillion (US$5 billion) project to build six of the advanced vessels.
According to the Defense Acquisition Program Administration (DAPA), the Defense Project Promotion Committee finalized the contracting method in a meeting on Monday afternoon. This move is seen as a crucial step to get the Korean Next-Generation Destroyer (KDDX) program back on track.
The project had been in limbo due to a bitter legal feud between the two defense giants that participated in the destroyer's initial design phase.
Context: A Rivalry on the High SeasThe KDDX project has been at the center of a corporate conflict between Hanwha Ocean and HD Hyundai Heavy Industries. The dispute escalated after several HD Hyundai employees were convicted of illegally acquiring confidential documents related to Hanwha's warship designs, leading to legal challenges and significant delays for the national defense project.
By opting for a selective bidding process, DAPA is effectively inviting the two qualified firms to compete on technical merit and cost, moving past the previous stalemate. This method restricts bidding to a few pre-qualified competitors, which in this case are the two companies already involved in the conceptual design.
The agency is expected to release further details on the bidding timeline and evaluation criteria soon. The decision revitalizes a cornerstone of South Korea’s naval ambitions to field a fleet of advanced destroyers surpassing its current Aegis-equipped fleet.
Related Articles
South Korea's government is launching an emergency transport task force this week to counter a planned strike by KORAIL rail workers over pay and working conditions.
South Korea's ruling and opposition parties have agreed to launch a special counsel investigation into bribery allegations involving the Unification Church and politicians on both sides, signaling a rare moment of unity to tackle a growing political scandal.
Amid a spike in border crossings, South Korea's military has updated its internal rules for defining the Military Demarcation Line (MDL) to prevent accidental clashes with North Korea, officials said.
South Korea's ruling Democratic Party has introduced a bill for a special insurrection tribunal targeting former President Yoon Suk Yeol, triggering a constitutional crisis with the judiciary and opposition.