Kim Dong-gwan at Hanwha Ocean's First Event: "No Artificial Restructuring"

Focus on Hanwha Ocean Normalization
Expecting Synergy in Special Ship and Defense Technology

First Special Ship Competition with HD Hyundai After Merger
Two 800 Billion Won-Class Frigates

Kim Dong-kwan, Vice Chairman of Hanwha Group, expressed his intention to pursue normalization without artificial restructuring at his first official event since acquiring Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering).

At Hanwha Ocean's First Official Event, Kim Dong-kwan Says "No Restructuring or Additional M&A"

Kim Dong-kwan, Vice Chairman of Hanwha Group (front row, right), is visiting the Hanwha Ocean booth at MADEX (International Maritime Defense Industry Exhibition), observing the displayed surface ships and receiving explanations. Photo by Hanwha Ocean

On the 7th, Kim visited the 'MADEX (International Maritime Defense Industry Exhibition) 2023' held at BEXCO in Busan without prior notice and toured the exhibition halls of Hanwha Ocean and other affiliates. When asked by reporters about the possibility of restructuring at Hanwha Ocean, Kim explained, "There are no plans for artificial restructuring or additional M&A (mergers and acquisitions)."

Kim told the press, "This is Hanwha Ocean's first exhibition since becoming part of the Hanwha family," adding, "We will make significant investments and develop mid- to long-term strategies to gain recognition not only domestically but also overseas." Regarding becoming a defense industry company encompassing land, sea, and air, he said, "There will be many contributions to world peace and international affairs," and expressed his view that "we will focus on expanding Korea's defense industry history globally and national security rather than simply maximizing profits by leveraging our strengths."

After receiving explanations about warships at the Hanwha Ocean exhibition, he encouraged, "Hanwha Ocean not only possesses world-class technology in the submarine field but also has strengths in history and technology in the surface ship sector, which was well demonstrated." He continued, "With Hanwha Ocean joining, I am confident that we can create synergies with Hanwha Aerospace and Hanwha Systems in many areas," emphasizing, "As a leading Korean defense company, let's practice principled management and strengthen our competitiveness in the global market."

First Competition Between Hanwha Ocean and HD Hyundai Heavy Industries Over Next-Generation Frigate Orders Begins

Baek Seon-tae, Sales Manager of Hanwha Ocean's Special Ship Division, is explaining the Ulsan-class Batch 3 at MADEX 2023, the International Maritime Defense Industry Exhibition held at BEXCO in Busan on the 7th. Photo by Jeong Dong-hoon

Hanwha Ocean participated in this exhibition as its first official event since its launch. Hanwha Ocean displayed a total of four types of surface ships: the Ulsan-class Batch 3 (Batch-III) frigate, Korean Destroyer (KDDX), Korean Next-Generation Smart Destroyer (KDDX-S), and the Joint Fire Support Ship. Additionally, two export-type submarines and a marine unmanned-manned hybrid system including unmanned underwater vehicles were also showcased.

Particularly drawing attention was the Ulsan-class Batch 3 frigate, where Hanwha Ocean and HD Hyundai Heavy Industries are competing for their first order in the special ship sector since Hanwha's acquisition. The Ulsan-class Batch 3 project involves constructing six 3,500-ton ships to replace the navy's aging frigates and patrol vessels, with a project value of 2.8 trillion KRW. Equipped with anti-air defense, anti-submarine detection capabilities, and stealth features, it is called a "mini Aegis ship." An Aegis ship refers to a vessel equipped with an integrated combat system that uses high-performance radar and medium-to-long-range anti-air missiles to counter enemy airborne weapons.

Previously, HD Hyundai Heavy Industries secured the contract for the first ship, and SK Ocean Plant (formerly Samkang M&T) won the contracts for the second, third, and fourth ships. The current bidding is for the last two ships, the fifth and sixth, with a total contract value exceeding 800 billion KRW.

Hanwha Ocean "Group Defense & Special Ship Synergy" vs. HD Hyundai Heavy Industries "Application of Aegis Ship Technology"

Choi Taebok, External Cooperation Manager of the Special Ship Division at HD Hyundai Heavy Industries, is explaining the competitiveness of HD Hyundai Heavy Industries in the special ship sector at MADEX 2023, the International Maritime Defense Industry Exhibition held at BEXCO in Busan on the 7th. Photo by Jeong Donghoon

Hanwha Ocean is the only domestic defense company that has undertaken all the Aegis ship and Korean destroyer projects KDX-I, II, III, as well as the Jangbogo-class submarine projects I, II, III. Especially after becoming part of the Hanwha Group, it is expected to generate synergy with affiliates such as Hanwha Aerospace and Hanwha Systems, which develop combat systems and related technologies.

Kim Min-ho, Chief Engineer of Hanwha Ocean's Special Ship Business Division, said about the defense synergy within the group, "Hanwha Systems' core combat system equipment will be installed on Hanwha Ocean's hull platforms," adding, "Since we are within the same group, we can establish a fast communication system. This allows for quicker and more precise integration and optimization of equipment and hulls, which is advantageous and expected to accelerate the project schedule and bring additional benefits." He also mentioned, "Currently, Hanwha Ocean has mostly completed the construction of previously ordered special ships, so it is in a position to proceed quickly from design to dock (shipyard) construction."

HD Hyundai Heavy Industries also possesses competitiveness in special ships. Having already secured the first ship contract, it holds a favorable position to demonstrate its technological capabilities. The unveiled Ulsan-class Batch 3 model applies an integrated mast (a pillar housing radar and navigation lights) and a domestically developed combat system to optimize system integration. It is the first in Korea to adopt a "high-capacity, high-power integrated electric propulsion system." Notably, it is designed as a "future expandable platform" to facilitate the addition of future weapon systems and performance upgrades of the platform as technology advances.

Choi Tae-bok, External Cooperation Officer of HD Hyundai Heavy Industries' Special Ship Business Division, said, "HD Hyundai Heavy Industries developed the Sejong the Great-class and King Sejong the Great-class ships, becoming the fifth country in the world capable of building Aegis ships," adding, "We expect to incorporate these technologies into the Korean destroyer projects as well. This is a differentiating advantage compared to other companies."

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