The Korean next-generation destroyer (KDDX) project has been postponed again. The KDDX project is the first domestically produced Aegis destroyer project that builds both the hull and the system with domestic technology. A total of six ships, including follow-up vessels, are planned to be constructed, and the project cost is 7.8 trillion won.

A Ministry of National Defense official noted during a regular briefing on the 25th that, "The schedule for the subcommittee on the KDDX project and the defense industry promotion committee has not yet been finalized," adding, "The Defense Acquisition Program Administration plans to discuss win-win cooperation measures with both shipbuilding companies at the earliest possible date and then submit proposals for decisions." The Defense Acquisition Program Administration explained that the companies will seek to find a method for cooperation and proceed with the project.

An overview of the next-generation Korean destroyer (KDDX) by HD Hyundai Heavy Industries (left) and models of the KDDX vessel by Hanwha Ocean. /Courtesy of both companies

The Defense Acquisition Program Administration held a subcommittee meeting on the 17th to discuss three project methods related to the detailed design and lead ship construction of the KDDX, including direct contracts, competitive bids, and joint development by both companies, but did not reach a conclusion. Additionally, another subcommittee meeting is scheduled for the 27th, but it has been decided not to include the KDDX project on the agenda for consideration at the promotion committee meeting in early next month.

The project has been postponed once again. The Defense Acquisition Program Administration initially planned to begin the detailed design and lead ship construction of the KDDX project after completing the basic design in December 2023. However, legal disputes between HD Hyundai Heavy Industries and Hanwha Ocean, as well as intense competition, have delayed the project for more than a year.

HD Hyundai Heavy Industries maintains that, according to tradition, it should proceed with a direct contract as the company responsible for the KDDX basic design. However, Hanwha has insisted that the contract should proceed as a competitive bid because of the past incidents involving military secrets related to HD Hyundai Heavy Industries.