Eternal Rivals 'Hanwha Systems VS LIG Nex1'

LIG Nex1 Gumi Factory Site Photo

Unmanned Surface Vehicle developed by Hanwha Systems

[Asia Economy Reporter Yang Nak-gyu] This year, domestic defense companies Hanwha Systems and LIG Nex1 will compete head-to-head for defense contracts. Intense competition is expected as the standing of the defense industry will change depending on the contracts secured this year.

The first contract that Hanwha Systems and LIG Nex1 will compete for is the combat system of the Korean Destroyer Experimental (KDDX). The KDDX is larger than the 4,200-ton Korean Destroyer (KDX-II) but smaller than the 7,600-ton Aegis destroyer (KDX-III), the main force of the Navy’s mobile fleet, earning it the nickname "mini Aegis ship." The KDDX combat system project aims to secure a shipborne combat system capable of detecting and tracking enemy ballistic missiles and performing missions such as air defense, anti-ship warfare, and land attack. The Navy plans to invest about 7 trillion KRW to acquire six 6,000-ton destroyers capable of operating in distant seas, with the final contractor to be selected by the end of this year to begin basic design.

Hanwha Systems boasts accumulated experience in shipborne combat systems. Over the past 30 years, Hanwha Systems has equipped more than 80 combat systems on Korean Navy destroyers, frigates, high-speed boats, and submarines. On the other hand, LIG Nex1’s strength lies in its development experience and core personnel in sensor-to-shooter systems, from radar to command and fire control systems. It also successfully completed the integration of the combat system for the Jangbogo-I performance improvement project.

The Navy is also promoting the domestic production project of the Close-In Weapon System (CIWS). CIWS serves as the "last bastion" protecting ships by defending against threats such as anti-ship guided missiles, high-speed infiltration boats, and terrorist surface vessels at the final stage. The military plans to invest 350 billion KRW from next year until 2030 for the domestic production project.

Until now, the Korean Navy has imported and used three types of CIWS from overseas: the RAM and Phalanx from the U.S. company Raytheon, and the Goalkeeper from the Dutch company Thales (formerly Signaal). Industry insiders believe that the government decided to promote the CIWS-II project to prepare for the possibility that a monopolistic supplier might raise weapon prices. It is also interpreted that the government believes Korea’s defense technology is sufficient to develop a "Korean-style CIWS."

The domestically developed CIWS-II will be installed not only on the Korean Destroyer Experimental (KDDX) but also on FFX-III class frigates and LPX-II class deck-type amphibious assault ships.

This content was produced with the assistance of AI translation services.