[Defense Commentary] The Significance of Dosan Ahn Changho Ship

[Moon Geun-sik, Professor at Graduate School of Political Studies, Kyonggi University] On August 13, 2021, at the Daewoo Shipbuilding & Marine Engineering (DSME) pier in Geoje Island, a ceremony was held to deliver the first domestically produced submarine, Dosan Ahn Changho, to the Navy. This moment marked the remarkable achievement of independently building the world’s 12th submarine after 13 years since the basic design contract was signed in January 2008 between the DSME-Hyundai Heavy Industries consortium.

To overcome the lack of technical expertise at the time, the Defense Acquisition Program Administration formed a consortium between Hyundai Heavy Industries and DSME, which were reputed as the world’s top two shipyards. Each company dispatched 50 design personnel to form a design team and began the basic design in a certain area in Busan. In advanced submarine-building countries, it is normal for a single company to maintain about 200-300 design personnel, but at that time, the combined dispatched design workforce was only about 100, which was a major concern.

Despite the shortage of technical personnel, the basic design was completed in four years. However, due to project management issues, detailed design and hull construction had to be competitively bid between the two companies again. Eventually, DSME proceeded with detailed design and hull construction alone, successfully completing the build in 13 years, making Korea the world’s 12th country to independently build a submarine.

◆ Delivery Delay Not Long Despite Adversities Such as COVID-19 = The Dosan Ahn Changho was originally scheduled for delivery on December 15 last year but was delayed by about eight months. This was due to the implementation of the 52-hour workweek following amendments to the Labor Standards Act, disruptions in manpower deployment caused by COVID-19, and delays in testing and evaluation of the torpedo decoy launcher. Before the pandemic, engineers from competing submarine-building countries who observed the hull construction process praised DSME’s meticulous design and process management. The eight-month delay caused by near force majeure factors such as the 52-hour workweek and COVID-19 cannot be considered a breach of delivery, and the completion of testing and evaluation means that most performance requirements were met.

Even veteran submarine builders like the UK experienced a seven-year delay in Upholder-class diesel submarine construction due to equipment performance shortfalls, and the Astute-class nuclear submarine delivery was delayed by five years with project costs increasing by about 2 trillion KRW (1.35 billion pounds). Australia’s Collins-class submarine delivery was delayed by four years due to equipment performance shortfalls and sea trial evaluation delays, with project costs increasing by over 800 billion KRW (1 billion USD). Spain’s S-80 submarine, started in 1998, has been drifting for 23 years due to unresolved critical defects, adding about 2.3 trillion KRW to project costs. Compared to these, the Dosan Ahn Changho’s approximately eight-month delivery delay due to the 52-hour workweek, COVID-19, and torpedo decoy launcher test evaluation delays is a rare global exemplary case in recent times.

▶ Successful Development of 31 Types of Onboard Equipment = The hallmark of an excellent submarine is its ability to realize “deeper, quieter, and more powerful” performance. To dive deeper, Pohang Iron and Steel used HY-100 steel for the pressure hull, enabling the diesel submarine to dive beyond 400 meters, the highest level for diesel submarines. For quieter performance, Hwaseung RNA developed Korea’s first acoustic anechoic coating, significantly reducing the submarine’s radiated noise, bringing the overall noise level to the world-class standard of Germany’s Type 214 submarines.

To enhance more powerful attack capabilities, DSME manufactured and installed six vertical launch tubes. The submarine-launched ballistic missile (SLBM) launched from these tubes is being developed and will be equipped by Hanwha Corporation. Additionally, Beomhan Fuel Cell Co., Ltd. developed the Air Independent Propulsion (AIP) system, the world’s second after Germany, allowing underwater operations for over three weeks without snorkeling, thus extending underwater operational periods. Using these enhanced capabilities, combat ability to detect and strike the enemy first was also improved through joint development of combat and sonar systems by ADD, LIG Nex1, and Hanwha Systems.

Furthermore, precise underwater positioning and error-free navigation are enabled by the gyrocompass (Daeyang Electric) and inertial navigation equipment (Hanwha Systems). The propulsion motor (Hyosung) and charging generator (Hyundai Heavy Industries) provide the submarine’s propulsion power. The integrated platform management system (KTE) ensures safe three-dimensional underwater maneuvering, and the integrated dual mast (Geumha Naval Tech) operates the submarine’s iconic periscope. All these were independently developed despite difficult conditions.

◆ Achieving 76% Localization Rate and Establishing a Foundation for Nuclear Submarine Construction is a Remarkable Achievement = The localization rate of Dosan Ahn Changho is about 76%, solving the challenge of having to procure parts from overseas during wartime. Localization of equipment and parts is the starting point for practical self-reliant defense and a green light for export market development.

When DSME exported submarines to Indonesia in 2012, the shipyard employees’ expressions were not very bright because a significant portion of the equipment and parts installed in the export submarines were imported. This meant that if the equipment was not developed domestically, exports would not be profitable. Achieving a 76% localization rate while independently developing a submarine for the first time is a remarkable achievement unique to Korea. To strictly adhere to all equipment development processes, DSME was the third in the world and the first in Korea to use a land-based test site (LBTS). As a result, it succeeded in developing 31 major pieces of equipment within the planned period, establishing a foundation for nuclear submarine construction.

◆ Challenge of Nuclear-Powered Submarine Construction = Although an excellent diesel submarine has been developed, our challenge cannot stop here. North Korea is pursuing the construction of nuclear-powered submarines equipped with SLBMs, and to prepare for naval power enhancements by China and Japan, Korea must expedite nuclear-powered submarine construction. Nuclear-powered submarines are weapon systems difficult to acquire due to political, economic, and technical reasons, but they have great strategic value in protecting the lives and property of the people. Now that Korea has successfully developed diesel submarines, it must once again concentrate national technological capabilities to challenge nuclear-powered submarine construction.

◆ Remaining Tasks = In the early stages of Ahn Changho’s construction, there were difficulties due to a shortage of submarine design personnel, and during detailed design bidding, excessive competition between shipyards caused serious problems. Learning from this, Korea needs to implement a volume allocation policy similar to Japan’s, where two shipyards alternately build submarines, to stably manage submarine personnel and facilities.

Also, to avoid long-term delivery delays caused by test evaluation delays of some equipment that do not affect main performance, the test evaluation standards and systems must be improved. For equipment that does not impact main performance, re-examining the introduction of excellent systems such as conditional delivery, as in the past, is necessary. The government must abandon its irresponsible attitude of only imposing liquidated damages for delivery delays of several months.

Liquidated damages are also taxpayers’ money. At the time of the Dosan Ahn Changho contract, there was no “recognition of sincere R&D performance” system, but now such a system has been established to protect companies that fail in development. There are no rules without exceptions. The retroactive application of the recognition system for sincere R&D performance should be reviewed to reward the dedication of companies actively participating in defense projects according to government policy.

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