"KDDX Confusion Threatens Livelihoods"...HD Hyundai Heavy Industries Union Protests Against Government and DAPA

HD Hyundai Heavy Industries Finalized Sentencing in 2022 for Acquiring Military Secrets
"Distinguish Between Past Illegal Acts and Today's Right to Livelihood"
"2,000 Jobs at Risk... Collapse of Fairness"

The labor union of HD Hyundai Heavy Industries has strongly protested that the prolonged confusion surrounding the Korean Next-Generation Destroyer (KDDX) project is increasing job insecurity among shipbuilding industry workers. The detailed design and construction of the lead ship for the KDDX project is a major defense project in which Hanwha Ocean and HD Hyundai Heavy Industries are competing.

On December 11, the HD Hyundai Heavy Industries labor union stated in its union newsletter, "Illegal acts cannot be tolerated," but also criticized, "The Defense Acquisition Program Administration is repeatedly bringing up an issue that has already been concluded with penalties and is using it as a basis for policy decisions."

The union argued that the fairness of work allocation is collapsing as the Defense Acquisition Program Administration has wavered in its standards, such as recently attempting to extend the period for security-related penalty points, only to reverse course and reconsider the decision.

From 2012 to 2015, HD Hyundai Heavy Industries was found, in investigations conducted between 2018 and 2019, to have illegally accessed and obtained technical data from Daewoo Shipbuilding & Marine Engineering (now Hanwha Ocean). Employees were prosecuted, and in November 2022, sentences were finalized, making the company subject to penalty points.

At the "Joint Weapon System Development Exhibition" held at the Defense Convention in Yongsan-gu, Seoul in 2019, a model of the "Korean Next-Generation Destroyer (KDDX)" destroyer is on display. Photo by Kang Jinhyung

The Defense Acquisition Program Administration initially announced that it would extend the period for these penalty points, which was originally set to end last month, until December next year, but amid industry backlash and legal action warnings, it has begun reconsidering the extension. In this situation, where it is unclear whether the penalty period will end, criticism has arisen over the lack of consistency in administrative decisions.

Amid this confusion, on December 5, President Lee Jaemyung mentioned the history of military secret leaks and stated, "There are strange rumors about awarding private contracts to such companies." This has heightened concerns that government sentiment may be shifting in favor of a particular company.

The KDDX project is worth a total of 7.8 trillion won and aims to build six 6,000-ton class destroyers by 2030. Hanwha Ocean is responsible for the conceptual design, while HD Hyundai Heavy Industries is in charge of the basic design. However, the selection of the contractor for the next phase-detailed design and lead ship construction-has been delayed for two years, causing the entire project to stall.

The HD Hyundai Heavy Industries labor union stated, "If we fail to win the contract, about 2,000 jobs will be at risk," and added, "We will firmly respond to any attempt to threaten the livelihood of workers who have no connection to past incidents."

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