Bahk Eun-ji has been with The Korea Times since 2012, building a career across multiple desks. She began at the Business Desk, where she conducted in-depth interviews with key figures in Korea's corporate world. Later, she moved to the Politics & City Desk, focusing on education policy and social affairs. She later served as team leader of the digital content team, leading curation efforts on the newspaper’s homepage and reshaping print stories for social media audiences to enhance digital reach. Now back on the Politics Desk, she covers the National Assembly and the Ministry of National Defense, with a renewed focus on political developments.
Next-generation destroyer faces more delays after shift to competitive bidding
A computer-generated image shows a simulated sea trial of Hanwha Ocean’s Korean Next-Generation Destroyer (KDDX). Courtesy of Hanwha Ocean
By Bahk Eun-ji
Two shipbuilding giants battle over Korea’s future high-tech warship program
Korea’s arms procurement agency has again postponed a final decision on how to award the Korean Next-Generation Destroyer (KDDX) project, opting instead for a designated competitive bidding process after nearly two years of deadlock.
The Defense Acquisition Program Administration (DAPA) said Monday that the Defense Project Promotion Committee had approved a plan to select a contractor for the detailed design and construction of the first KDDX vessel through a competition limited to HD Hyundai Heavy Industries and Hanwha Ocean.
The agency will now redraw its master plan for the ship’s detailed design and construction, a blueprint that must clear a final committee hurdle before formal bids are solicited. While the move introduces another layer of administrative review to the already stalled program, officials insist they are committed to an aggressive timeline, aiming to finalize a contract by the end of next year.
A DAPA official said the committee reached the decision unanimously after extensive deliberation.
“Many members emphasized the need to restore fairness through competition, while also ensuring that the project does not face further delays,” the official said during a closed-door briefing following the meeting.
The KDDX program, launched in 2011, envisions the construction of six 6,000-ton-class destroyers equipped with domestically developed combat systems, forming a core element of the Navy’s future surface fleet. Hanwha Ocean — then operating as Daewoo Shipbuilding & Marine Engineering — produced the concept design in 2012, with HD Hyundai Heavy Industries completing the basic design several years later.
However, the project has been mired in controversy since it emerged that HD Hyundai employees illegally obtained confidential KDDX-related materials, including concept design data. Court rulings finalized in 2023 confirmed the violations, fueling a prolonged dispute over whether the follow-on stages should be awarded through a sole-source contract or open competition.
DAPA had favored a sole-source contract, arguing that it would be faster and better if they preserve design continuity, but the approach drew criticism over fairness and potential legal challenges.
The debate intensified earlier this month after President Lee Jae Myung publicly questioned the appropriateness of awarding sole-source contracts to firms penalized for leaking military secrets.
Explaining the latest decision, a DAPA official said the designated competition would allow the agency to balance fairness with schedule management.
“Based on the committee’s decision, we will proceed step by step according to established procedures, with the goal of finalizing the contract by the end of next year,” the official said.
The decision effectively reopens the race between the two shipbuilders, a development seen as widening opportunities for Hanwha Ocean.
Hanwha Ocean welcomed the decision in a statement, calling it a positive step toward resolving long-standing uncertainties surrounding the project.
“The decision to finalize the selection method for the detailed design and construction of the lead KDDX vessel, even at this stage, is a welcome outcome,” the company said.
Concerns remain that the prolonged selection process could affect the Navy’s force modernization timeline, as several aging destroyers are expected to retire in the coming years. DAPA, however, said the revised schedule can still meet operational requirements if subsequent procedures proceed without further disruption.