Hanwha Ocean Selected as Prime Contractor for South Korea's Next-Generation KDDX Destroyer Program

Hanwha Ocean Wins South Korea's KDDX Destroyer Contract

Hanwha Ocean has been selected by South Korea's Defense Acquisition Program Administration (DAPA) as the contractor for the detailed design and lead-ship construction phase of the Republic of Korea Navy's KDDX next-generation destroyer program, beating rival bidder HD Hyundai Heavy Industries, according to government and industry sources.

Reporting from June 11 indicates that Hanwha Ocean outscored HD Hyundai Heavy Industries by a margin of 0.5867 points in DAPA's evaluation for the KDDX detailed design and lead-ship construction contract.

Program Scale and Strategic Significance

The KDDX program calls for the construction of six 6,000-ton-class next-generation destroyers for the Republic of Korea Navy, with a total program value of approximately 7.8 trillion won (roughly USD 5.7 billion). The class is designed to integrate a domestically developed hull, an indigenously developed combat management system, and key homegrown sensors including a multifunction radar. The detailed design and lead-ship construction phase advances the program from design development into actual shipbuilding, making this one of the most strategically significant naval shipbuilding contracts in South Korean history.

An Unexpected Outcome

Hanwha Ocean's selection represents a break from established convention. Historically, Hanwha Ocean — formerly known as Daewoo Shipbuilding & Marine Engineering (DSME) — has been responsible for the detailed design and lead-ship construction of Korean Navy submarines, while HD Hyundai Heavy Industries has typically handled major surface combatants. HD Hyundai Heavy Industries had already secured the KDDX basic design contract in 2020 and completed that phase in December 2023.

Safety Penalty Proves Decisive

The competition between the two bidders was closely watched by the Korean defense industry. A critical factor in the outcome was a 1.2-point deduction applied to HD Hyundai Heavy Industries for safety-related violations stemming from a criminal conviction involving the unauthorized acquisition of KDDX concept design data. Although the penalty had previously been expected to expire in November 2025, DAPA subsequently determined — based on the timing of the final conviction — that the penalty would remain in effect through the end of 2026.

Given that the two bidders were separated by only 0.5867 points, industry observers noted that the deduction likely played a decisive role in determining the outcome.

The result is still subject to review and objection procedures before DAPA formally completes the contractor selection process.

About the KDDX Program

The KDDX is intended to be the Republic of Korea Navy's first fully indigenous destroyer class, integrating a domestically developed hull design, combat management system, and key sensors. The destroyer has a light displacement of approximately 7,100 tonnes and is expected to feature an Integrated Electric Propulsion System (IEPS), a stealth-optimized hull form, and an Integrated Mast (I-MAST) housing a dual-band S/X-band phased-array multifunction radar.

The class is planned to be equipped with Korean Vertical Launch Systems — KVLS-I and KVLS-II — capable of deploying indigenous missiles including the K-SAAM short-range air defense missile and the Ship-to-Air Missile-II (SAM-II) long-range naval air defense missile developed and manufactured by LIG Nex1.

The six KDDX destroyers are expected to serve as core assets of the Republic of Korea Navy's Fleet Command, replacing the currently serving KDX-I / Gwanggaeto the Great-class destroyers.

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