Hanwha Ocean named preferred bidder for Korea's next-generation destroyer program

Hanwha Ocean has been chosen as the preferred bidder to design and build the first of Korea's next-generation destroyers, the company said in a regulatory filing Thursday, after the arms procurement agency rejected an objection by rival HD Hyundai Heavy Industries.

The decision covers the detailed design and construction of the lead ship in the program, the Korea Destroyer Next Generation (KDDX). It calls for six 6,000-ton "mini-Aegis" destroyers to be built entirely with domestic technology at a total cost of 7.8 trillion won ($5 billion).

"Mini-Aegis" refers to warships with capabilities similar to those equipped with the U.S. Aegis combat suite.

The contract amount and timeline will be set through further negotiations before a final deal is signed, the company said.

The Defense Acquisition Program Administration (DAPA) notified both bidders of its proposal evaluation results on June 11. HD Hyundai Heavy Industries scored 0.6425 points higher than Hanwha Ocean in the technical capability assessment, but a 1.2-point security deduction tied to a past leak of military secrets reversed the ranking in Hanwha Ocean's favor.

HD Hyundai Heavy Industries objected to the evaluation result. DAPA dismissed the objection on Wednesday.

Warship acquisition programs typically move through concept design, basic design, detailed design and lead-ship construction, then follow-on ship construction. Hanwha Ocean handled the concept design for KDDX, while HD Hyundai Heavy Industries completed the basic design.

BY HYEON YE-SEUL [[email protected]]