Hanwha Leads Submarine, HD Hyundai Focuses on Surface Ships... Forming an 'Export One Team'
Both Companies Sign MOU at DAPA for Warship Export Cooperation
The Defense Acquisition Program Administration (DAPA), Hanwha Ocean, and HD Hyundai Heavy Industries have signed a memorandum of understanding (MOU) centered on mutual cooperation for warship export projects. They have agreed to effectively form a 'one team' in the warship business.
On the 25th, DAPA announced that it signed an MOU at its Gwacheon office in Gyeonggi Province, stipulating that HD Hyundai Heavy Industries will lead surface ship exports while Hanwha Ocean will lead submarine exports, with each company supporting the other.
DAPA explained that this meeting was arranged to maximize the strengths of the shipbuilding companies while enhancing project efficiency through resource allocation and technology sharing. Through this cooperation, the two companies plan to continue mutual collaboration on joint development projects and more.
South Korea was selected as the first candidate in Australia’s approximately 10 trillion won SEA 3000 project to acquire 11 new frigates but was eliminated in the second candidate selection process last November. Subsequently, HD Hyundai Heavy Industries and Hanwha Ocean, which were engaged in overheated competition over the domestic Korean Destroyer Experimental (KDDX) project, each entered the project separately, leading to criticism that they ultimately lost to Japanese and German companies.
A Hanwha Ocean official said, “We approached this MOU with a sense of duty as defense contractors who must prioritize national security and the safety of the people from a magnanimous perspective,” adding, “We hope that this MOU will foster a cooperative atmosphere among companies in the domestic and international warship markets, and based on this, we will work together to achieve success in overseas warship orders.”
Meanwhile, HD Hyundai Heavy Industries and Hanwha Ocean are competing domestically for the Korean Destroyer Experimental (KDDX) project, which has a total project cost of 7.8 trillion won. This project involves building six domestically produced destroyers with hulls and Aegis systems developed entirely with domestic technology. Hanwha Ocean won the conceptual design, while HD Hyundai Heavy Industries secured the basic design.
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A DAPA official said, “We hope that today’s MOU signing will mark a new turning point in establishing a foundation for the co-growth of the Korean defense industry,” and added, “We will provide wholehearted support for K-ship exports and the establishment of global maritime security.”
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