The Ministry of Trade, Industry and Energy designated both HD Hyundai Heavy Industries and Hanwha Ocean as defense companies to produce the Korean next-generation frigate (KDDX) finished goods. The final selection of the KDDX project operator is expected to occur as early as March next month.
On the 3rd, the Ministry of Trade, Industry and Energy said it designated Hanwha Ocean and HD Hyundai Heavy Industries as defense companies capable of producing KDDX after consultations with related agencies, including the Defense Acquisition Program Administration.
KDDX is the first domestically produced frigate project to construct the hull and Aegis system entirely with domestic technology. There are plans to build a total of six vessels, with the project cost amounting to 7.8 trillion won.
The Ministry of Trade, Industry and Energy reported that the two companies were designated after passing procedures, including ▲ feasibility study for new company designation ▲ formation of a joint on-site inspection team and preparation of production capacity evaluation criteria ▲ and joint on-site inspections.
A Ministry of Trade, Industry and Energy official noted, "To ensure procedural feasibility and fairness related to defense company designation, a joint on-site inspection team was operated for the first time, including the Defense Acquisition Program Administration, Navy, Defense Science Research Institute, Defense Technology Quality Agency, and the Defense Rapid Acquisition Technology Research Institute."
As the designation of defense companies by the Ministry of Trade, Industry and Energy is completed, the Defense Acquisition Program Administration will decide on the final operator for KDDX.
The Defense Acquisition Program Administration plans to submit the project promotion plan to the Defense Business Promotion Committee (DPC) by next month, and the DPC is expected to determine the final operator and project methods after deliberation.
The final operator for KDDX is expected to be selected as early as next month and no later than the first half of the year.