KDDX Project Delayed Again... Moving Toward a Mutually Beneficial Cooperation Plan?

DAPA: "This week's subcommittee agenda will not include the proposal"

The decision on the selection method for the Korean Next-Generation Destroyer (KDDX) contractor has been postponed once again.

On September 15, the Defense Acquisition Program Administration (DAPA) announced to the press via text message that, "To allow for further review of mutually beneficial cooperation measures in the KDDX project, we have decided not to submit the matter to the 130th Defense Project Planning and Management Subcommittee meeting scheduled for this Thursday."

DAPA was initially expected to make a final decision this month. After completing a report to the National Assembly and finalizing technological advancements, DAPA provided a prior briefing to civilian members of the subcommittee on September 12 regarding the agenda to proceed with a negotiated contract for the 'KDDX detailed design and construction of the lead ship (ship No. 1).' However, some members maintained a negative stance toward the negotiated contract. DAPA attempted to persuade them before the subcommittee meeting, but as the opposition remained firm, it became clear that unanimous approval would be difficult to achieve.

DAPA had previously attempted to decide on a negotiated contract for the KDDX project at subcommittee meetings held on March 17 and April 24, but the agenda was postponed due to opposition from civilian members. The subcommittee consists of a total of 25 members.

Some observers predict that a mutually beneficial cooperation plan will eventually be pursued. This means that the two companies, which had been at odds over whether to select the detailed design contractor through a negotiated contract or competitive bidding, may have no other choice but to shift toward a cooperative approach.

In this context, one proposal being discussed is to assign Hyundai Heavy Industries the detailed design and construction of the lead ship, while placing early orders for ships No. 2 to No. 6 so that production can be shared. In particular, if Hanwha Ocean is tasked with the early construction of ship No. 2, it could participate in or share part of the detailed design, effectively resulting in a joint development approach between the two companies. It is reported that both companies are generally receptive to this idea.