'Hyundai vs Hanwha' KDDX Litigation, Police Agency's Major Crime Investigation Division Investigates

Police Agency "Investigation Already Progressing... Need for Unification"

The lawsuit between HD Hyundai Heavy Industries and Hanwha Ocean over the Korean next-generation destroyer (KDDX) project, which involves a total project cost of 8 trillion won, is expected to be unified and investigated by the Major Crimes Investigation Division of the National Police Agency.

A National Police Agency official stated at a regular press briefing on the 13th, "All cases filed by both parties have been assigned to the Major Crimes Investigation Division," adding, "Since the investigation has already progressed significantly and complaints have been received, the investigative authority was decided considering these factors."

The KDDX project is the first to domestically build the entire Aegis system using Korean technology, with a project cost of 7.8 trillion won and a total of six ships scheduled to be ordered by 2030. The shipbuilding project proceeds in the order of 'concept design → basic design → detailed design and lead ship construction → subsequent ship construction,' with Hanwha Ocean awarded the concept design and HD Hyundai Heavy Industries awarded the basic design.

However, tensions between the two companies deepened after it was revealed that nine employees of HD Hyundai Heavy Industries illegally obtained Hanwha Ocean's KDDX report (classified as level 3 military secret) during the Defense Acquisition Program Administration's basic design contractor selection process. These employees were convicted last November for leaking military secrets. The Defense Acquisition Program Administration also deducted 1.8 security points from HD Hyundai Heavy Industries according to agency regulations. Subsequently, in February, after reviewing whether to restrict bidding participation, an administrative guidance measure was decided.

In response, Hanwha Ocean filed a complaint with the police, raising suspicions that executives might have been involved in the military secret leak, citing past investigation records from the Defense Security Command and Ulsan District Prosecutors' Office, as well as court rulings confirming the employees' convictions.

Employees of HD Hyundai Heavy Industries denied the involvement of executives, filing a complaint against Hanwha Ocean executives for defamation by spreading false information. They rebutted, stating, "Executives were not involved in any violation of the Military Secrets Protection Act, and the investigation records disclosed by the complainant selectively excerpted and edited parts of the suspect interrogation records obtained through the Ministry of National Defense Prosecutor's Office."

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