[Yang Nak-gyu's Defence Club] Is HD Hyundai Heavy Industries Involved in Corruption Again?

Suspicion of Favoritism in KDDX Contractor Selection
Security Score Relaxed Despite Design Leak

HD Hyundai Heavy Industries is under investigation over allegations of receiving preferential treatment in the selection process for the Korean next-generation destroyer (KDDX) project.

[Image source=Yonhap News]

According to government officials on the 3rd, the National Police Agency’s Serious Crime Investigation Division is investigating the Defense Acquisition Program Administration (DAPA) for allegedly modifying some evaluation criteria scores to favor HD Hyundai Heavy Industries during the selection process for the KDDX project, which is valued at 7.8 trillion won. The KDDX project aims to deploy six 6,000-ton mini Aegis destroyers by 2030.

The police have booked a senior DAPA official, Mr. A, who was in charge of the contractor selection at the time. Mr. A is currently retired.

Previously, in 2014, a retired naval officer was sentenced to prison for leaking the KDDX conceptual design documents prepared by Daewoo Shipbuilding & Marine Engineering to HD Heavy Industries personnel. Although HD Hyundai Heavy Industries was implicated in this case, the penalty was reduced due to a relaxed regulation stating that companies responsible for security breaches would receive point deductions.

The police believe that Mr. A was the one who changed the regulations to favor HD Hyundai Heavy Industries, which enabled the company to be selected as the KDDX contractor. At that time, HD Hyundai Heavy Industries was chosen over its competitor Daewoo Shipbuilding & Marine Engineering by a margin of 0.056 points.

DAPA is reportedly stating that it referred to the institutional improvement resolutions of the Anti-Corruption and Civil Rights Commission.

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