The Democratic Party of Korea and the government held a party-government consultative meeting on the 30th to discuss ways to ensure mutual growth for the Korea Destroyer Next Generation (KDDX), but they failed to reach a specific conclusion. The project has continued to be delayed as HD Hyundai Heavy Industries and Hanwha Ocean fiercely compete.
The consultative meeting began at 7:30 a.m. that day. From the Democratic Party side, National Defense Committee members, including Democratic Party lawmakers Bu Seung-chan and Park Sun-won, attended, and from the government side, Defense Acquisition Program Administration (DAPA) Commissioner Seok Jong-geon and Ministry of National Defense Vice Minister Lee Doo-hee attended. Participants discussed organizational restructuring to strengthen defense exports, along with a mutual growth plan for KDDX.
After the meeting, Rep. Bu met with reporters and said, "No conclusion has been reached yet regarding KDDX." He added, "We were briefed that various mutual growth cooperation plans and a primary legal review had been carried out. Based on the discussions so far, the Defense Acquisition Program Administration will ultimately have to proceed with the project method, and we only offered opinions accordingly."
The Defense Acquisition Program Administration said it would review the opinions raised at the party-government consultative meeting. DAPA Spokesperson Kim Joo-cheol said at a regular Ministry of National Defense briefing that morning, "DAPA will decide the project method and, if issues arise, will consult with the party. In line with the results of the party-government consultative meeting, we will review items that merit internal examination."
The KDDX project is a program to invest 780 billion won by 2030 to build six Aegis destroyers domestically, including the hull, combat systems, and radar. HD Hyundai Heavy Industries maintains that detailed design and construction of the lead ship (ship No. 1) within the overall project should proceed, as is customary, through a private contract. Hanwha Ocean, by contrast, argues that there should be a competitive bid. There had been cross-filed complaints between the companies over construction eligibility, and although DAPA moved to craft a cooperation plan, things did not go as intended, leading to a party-government consultative meeting.
Industry insiders are skeptical that the consultative meeting can produce a mutual growth plan that neither company will oppose. All of the plans floated so far are expected to face pushback, and if the government and ruling party present an opinion, it could appear to restrict competition. If the project proceeds via a private contract, the eligibility of HD Hyundai Heavy Industries, which received a confirmed ruling on technology leakage, is expected to be raised again. There is also talk that splitting the detailed design of the lead ship between the two companies is effectively difficult due to concerns about technology leakage.
A plan to steer the second ship to a specific company could also raise concerns about collusion. With HJ Shipbuilding & Construction and SK oceanplant also seeking to participate in the KDDX project, steering construction of the second ship to one company would make it look as if the government and ruling party are restricting fair competition. An industry official said, "The consultative meeting may be held a few more times, but reaching a conclusion does not look easy."