HD Hyundai Heavy Industries has withdrawn from the conceptual design bidding process for the second batch (Ships 4–6) of South Korea’s Next-Generation Destroyer (KDDX) program. As the sole bidder, Hanwha Ocean is expected to finalize the conceptual design contract through negotiations.
According to South Korean media reports, the (second batch) KDDX project was scheduled to hold two rounds of concept design tenders on July 10 and July 20, respectively. HD Hyundai Heavy Industries did not submit bids for either round. As Hanwha Ocean was the sole shipbuilder to participate in both rounds, the tenders were declared unsuccessful.
Under relevant South Korean regulations, after two unsuccessful bidding rounds, the tendering authority may negotiate and sign a contract with the sole bidder; therefore, Hanwha Ocean is expected to secure the conceptual design contract for the second batch of the KDDX project.
The KDDX project is a national priority initiative in South Korea, with a total budget of approximately 7.8 trillion won (about $5.3 billion). The plan calls for the construction and deployment of six 6,000-ton destroyers by 2030. Every aspect of this class of destroyer—from the hull to the weapon systems—will be built using entirely domestically developed South Korean technology. Once completed, South Korea will become the sixth country in the world to have fully achieved the indigenous production of destroyers.
Under the plan, the first three destroyers built under the KDDX program are classified as the first-generation design, constituting the program’s first batch; the fourth through sixth destroyers are classified as the second-generation design, constituting the program’s second batch, which is currently in the conceptual design bidding phase. The conceptual design for the first three destroyers was completed in 2012 by Daewoo Shipbuilding & Marine Engineering, the predecessor of Hanwha Ocean, and the basic design was completed by HD Hyundai Heavy Industries at the end of 2023.
In accordance with standard practice in South Korea’s defense and military industry projects, the company responsible for the basic design of a naval vessel project is typically awarded the contract for the detailed design. The South Korean industry has consistently regarded HD Hyundai Heavy Industries as the leading candidate for both the detailed design and the construction of the lead ship.
However, this method of awarding the contract has been strongly questioned and opposed by Hanwha Ocean, leading to fierce competition between the two parties—including the filing of criminal charges against one another—and resulting in the delivery of the first three vessels being delayed.
In December 2025, South Korean President Lee Jae-myung noted that an employee of HD Hyundai Heavy Industries had been convicted of leaking military secrets. Subsequently, the Defense Acquisition Program Administration (DAPA) changed the bidding process for the detailed design and construction of the lead ship of the first batch of the KDDX project to an open competitive bidding process—a first in the history of South Korea’s defense procurement projects.
Regarding the concept design bidding phase for the second batch of the KDDX project, HD Hyundai Heavy Industries stated that its decision on whether to participate in the concept design for the second batch of destroyers will be made based on business conditions.
The KDDX project is being implemented in phases, proceeding in the following order: conceptual design, basic design, detailed design, construction of the lead ship, and construction of subsequent ships.
Although HD Hyundai Heavy Industries “voluntarily” withdrew from the bidding for the conceptual design of Destroyer Classes 4 through 6 under the KDDX project, the South Korean industry believes this move does not mean the shipbuilder will withdraw from the project. Conceptual design is part of the early planning phase of the project, and the bidding for the basic design is of greater importance.