KDDX Project Method to Be Decided Again on the 28th of This Month

The method for the Korean next-generation destroyer (KDDX) project, which has remained unresolved for over a decade, is expected to be finalized within this month, reigniting the dispute between HD Hyundai Heavy Industries and Hanwha Ocean. This project, intended to counter North Korea's nuclear and missile threats, has been stalled for years due to excessive competition between the two companies and inadequate project management by the Defense Acquisition Program Administration (DAPA) since 2011. The two companies are at odds over whether to proceed with a private contract or competitive bidding.

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On August 14, a government official stated, "Following the Minister of National Defense's directive, a KDDX Technical Advisory Committee meeting was held the previous day. Based on the results, a briefing for the National Assembly will be completed, and on August 28, the Defense Acquisition Program Promotion Committee (DAPPC), chaired by the Minister of National Defense, is scheduled to convene."

The Technical Advisory Committee meeting was presided over by the acting head (Colonel) of the DAPA Naval Ship Division, with university professors and the Agency for Defense Development (ADD) in attendance. The main focus of the meeting was to determine whether the technologies incorporated into the KDDX are suitable for modern warfare, and it has been reported that the committee reached a consensus that there were "no issues."

The core issue regarding the KDDX project method is which company, HD Hyundai Heavy Industries or Hanwha Ocean, will be responsible for the detailed design and construction of the lead ship. HD Hyundai Heavy Industries insists that, following established practice, the company that handled the basic design should also carry out the detailed design through a private contract. In contrast, Hanwha Ocean argues that the process should proceed fairly through competitive bidding.

HD Hyundai Heavy Industries is advocating for a private contract due to a "security penalty." The company is subject to a 1.8-point deduction in national project bidding until November this year because some employees were convicted of violating the Military Secrets Protection Act. In defense procurement projects, where outcomes can be determined by fractions of a point, this is a critical factor. For example, in the 2023 Ulsan-class Batch-III frigate 5th and 6th ship project, HD Hyundai Heavy Industries scored higher in the proposal evaluation, but Hanwha Ocean won the contract by a margin of 0.1422 points due to the penalty.

Hanwha Ocean's position is that unless there is competitive bidding, the design process should start over from scratch. In 2012, the first-phase conceptual design was carried out by Daewoo Shipbuilding & Marine Engineering, the predecessor of Hanwha Ocean, while HD Hyundai Heavy Industries was responsible for the basic design from 2020 to 2023. During this period, an incident occurred in which an employee of HD Hyundai Heavy Industries was convicted for illegally photographing the KDDX conceptual design, which had been prepared under Hanwha Ocean's leadership. This caused delays. Although the KDDX is scheduled to be delivered to the Navy in 2031, there are claims that the design phase has failed to reflect the future maritime operational environment, necessitating design modifications or a complete redesign.

Experts tend to support the need for redesign. The Navy plans to apply the "Navy Sea GHOST," a manned-unmanned integrated combat system, for maritime operations. In order for the KDDX to realize the Navy Sea GHOST, it must be equipped with various systems. Technologies required for a manned-unmanned integrated combat system include integrated antenna technology within the ship, integration of unmanned combat systems, and integration of multiple types of consoles. However, these systems are not included in the current KDDX basic design.

Crew size is also an issue. The KDDX is expected to have a crew of about 150. In comparison, France's new first-class frigate (FDI) has a crew of 110, Japan Maritime Self-Defense Force's Mogami-class frigate (FFM) has 90, and Italy's multipurpose offshore patrol vessel (PPA) has around 100. Although there are differences in ship size, there are concerns that the KDDX requires a relatively large crew.

Choi Bongwan, professor of Industrial and Management Engineering at Hannam University, emphasized, "The KDDX basic design focused on localization of the combat system and integrated mast. To enhance operational capability, it is essential to incorporate the manned-unmanned integrated combat system required by the Navy."

The government official added, "Ultimately, the decision of the Technical Advisory Committee will hinge on obtaining the consent of the National Assembly and persuading the civilian members of the DAPPC."

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