Hanwha Ocean has been selected as the preferred bidder for South Korea’s next-generation destroyer program (KDDX), a landmark defense project valued at approximately KRW 7.8 trillion ($5.7 billion), marking a major step forward in the country’s indigenous naval capability development.
According to the Defense Acquisition Program Administration (DAPA), the company was officially notified of its selection following a comprehensive evaluation process that included technical assessments, site inspections, and review of objections submitted by competing bidders.
The KDDX program aims to develop and construct six 7,000-ton-class Aegis-type destroyers using domestic technology, representing one of South Korea’s most advanced surface combatant development initiatives to date.
The bidding process, launched in March, saw participation from Hanwha Ocean and HD Hyundai Heavy Industries. Both companies underwent detailed technical evaluations, with the final scores reportedly separated by a narrow margin.
Industry sources noted that Hanwha Ocean’s lead was partly influenced by a security-related penalty applied to HD Hyundai Heavy Industries. The company had previously been involved in a military confidentiality breach case related to the KDDX project, resulting in a court ruling against some employees and a corresponding deduction in evaluation scores.
HD Hyundai Heavy Industries filed an objection to the evaluation results, but DAPA rejected the appeal after review, confirming that the selection process had been conducted in accordance with relevant laws and procedures.
A DAPA official said the agency would proceed with negotiations with the preferred bidder while ensuring transparency and adherence to regulations, adding that the project timeline would be maintained without disruption.
The KDDX program is considered a cornerstone of South Korea’s naval modernization strategy, designed to reduce reliance on foreign systems and strengthen indigenous shipbuilding capabilities in advanced destroyer-class vessels.
Hanwha Ocean said it has been preparing for the project through extensive investment in next-generation naval technologies, including integrated electric propulsion systems, advanced combat network architecture, and automation technologies aimed at reducing crew requirements.
The company also highlighted its development of a “next-generation strategic surface combatant,” which incorporates unmanned systems integration and advanced defensive capabilities. The design has reportedly received Approval in Principle (AiP) certification from Lloyd’s Register, underscoring its engineering credibility.
Defense industry analysts say the KDDX project will intensify competition within South Korea’s shipbuilding sector while strengthening the country’s position in high-end naval exports.
“This program is not just about building destroyers; it represents a shift in Korea’s naval warfare capabilities,” said a defense industry official. “The integration of advanced automation and networked combat systems will be critical to future naval operations.”
Another analyst noted that the project could serve as a stepping stone for future export-oriented warship development, as global demand for advanced surface combatants continues to grow.
Hanwha Ocean said it will work closely with the government during the negotiation phase to ensure timely and stable execution of the program, aiming to deliver a next-generation destroyer platform that enhances the operational capabilities of the Republic of Korea Navy.
