Hanwha Ocean "KDDX Concept Design Not Illegally Used... Followed Regulations"

Hanwha Ocean has denied allegations of illegal use of the Korean-type next-generation destroyer (KDDX) concept design.

On the 12th, Hanwha Ocean issued a statement saying, "We clearly state that the allegations that Hanwha Ocean illegally quoted and used content from the concept design report in the basic design proposal are not true."

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The company explained, "After the 2012-2015 incident involving the theft of military secrets related to Hanwha Ocean's KDDX from Hyundai Heavy Industries, the Defense Acquisition Program Administration (DAPA) held three security verification committee meetings composed of experts within DAPA, security teams, and personnel dispatched from the Counterintelligence Command in 2020 to review whether Hyundai Heavy Industries' basic design proposal for KDDX included any misuse of Hanwha Ocean's concept design content."

They continued, "During this process, the security verification committee reviewed both Hyundai Heavy Industries' and Hanwha Ocean's basic design proposals and confirmed that images included in Hanwha Ocean's concept design report were reflected in the proposal. The report images were data that had long passed their date at the time of the 2020 basic design proposal preparation and were incorporated under internal review to prepare a thorough proposal linked to the KDDX project," they added.

It is reported that although the security verification committee identified some parts that were cited, the final conclusion was 'no problem.' Hanwha Ocean emphasized that the issue of using KDDX concept design content without prior approval had already been resolved with no problems.

Hanwha Ocean stated, "Previously, there were also allegations regarding the storage of the original KDDX concept design, but Hanwha Ocean provided explanations and the controversy subsided. This is because there was no basis that storing the original violated the Military Secrets Protection Act guidelines and orders at the time in 2012, and the contract at that time did not require submission of the original," they said.

Recently, it has been reported that DAPA is reviewing the opinion that retroactive application is possible because Hanwha Ocean stored the original concept design report and used it in the basic design proposal.

The company explained, "When the concept design contract was signed in 2012, the receipt confirmation and submission official documents clearly stated not only that our company stored the original but also the retention period for the original and copies. Furthermore, during annual security inspections by DAPA, the Counterintelligence Command, and the National Intelligence Service, Hanwha Ocean has lawfully stored the original through verification procedures confirming actual storage according to the original storage list," arguing that since Hanwha Ocean's storage of the original was lawful, retroactive application itself is unreasonable.

A Hanwha Ocean official said, "Regarding recent allegations related to Hanwha Ocean's 'original storage' and 'use of concept design content' in the KDDX project, Hanwha Ocean has faithfully followed regulations and procedures in the KDDX project."

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