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Arms agency, Hanwha Ocean, HD Hyundai Heavy sign MOU to cooperate in warship exports

Published: 25 Feb. 2025, 19:29

Representatives of Defense Acquisition Program Administration (DAPA), HD Hyundai Heavy Industries and Hanwha Ocean pose for a photo after a signing ceremony in Gwacheon, Gyeonggi, on Feb. 25. [DAPA]

The state defense procurement agency signed an initial agreement Tuesday with major shipbuilders Hanwha Ocean and HD Hyundai Heavy Industries to promote cooperation on warship export projects, according to officials.

Under the memorandum of understanding (MOU), the three sides will work together to win overseas warship deals, with Hanwha Ocean taking the lead on submarine projects and HD Hyundai Heavy on surface ships, according to the Defense Acquisition Program Administration (DAPA).

DAPA said the shipbuilders would offer support to each other, expressing expectations that the move will help them focus on projects catered to their strengths and possibly lead to further cooperation, such as joint development projects.

“The MOU signing is expected to establish the foundation for joint growth in South Korea's defense industry,” DAPA Minister Seok Jong-gun said in a release.

DAPA has sought cooperation between the two shipbuilders after they failed to be short-listed for a major Australian frigate project last year, losing out to Japan's Mitsubishi Heavy Industries and Germany's Thyssenkrupp Marine Systems.

The rival shipbuilders have been in fierce competition with each other to win overseas warship projects, as well as a next-generation destroyer project in Korea.

Earlier this month, the Ministry of Trade, Industry and Energy short-listed the two companies to become final candidates for the 7.8 trillion-won ($5.45 billion) Korea Destroyer Next Generation project aimed at building six new destroyers.