Hanwha Ocean selected for $5.1B destroyer project in South Korea

SEOUL, June 12 (UPI) -- South Korea's Hanwha Ocean has been selected as the preferred bidder for a $5.1 billion naval shipbuilding project, defeating domestic rival HD Hyundai Heavy Industries.

The state-run Defense Acquisition Program Administration disclosed Hanwha Ocean's victory Thursday, following a close-watched bidding process for the next-generation Korean destroyer program.

The so-called KDDX initiative calls for the deployment of six 6,000-ton Aegis-equipped destroyers by 2030 to replace aging warships, which are scheduled to retire at the end of this decade.

Hanwha Ocean reportedly prevailed by about 0.5 points after HD Hyundai Heavy incurred a 1.2-point penalty as its employees were found guilty of leaking KDDX conceptual design documents and related materials.

The KDDX program was originally set to pick a lead contractor in 2024, but the process was delayed by two years amid disputes and litigation about the leakage of confidential information.

"As a trusted partner to support the enhancement of South Korea's naval capabilities, we will dedicate ourselves to the timely deployment of the KDDX fleet," Hanwha Ocean said in a statement.

"We will also strengthen the country's maritime defense industrial ecosystem through mutually beneficial cooperation with small and medium-sized suppliers."

Meanwhile, HD Hyundai Heavy expressed regret over the outcome.

"We are disappointed that we were not selected despite receiving a significantly higher score in the technical evaluation," the shipbuilder said in a statement. "We plan to request a debriefing to review the detailed results of the assessment and the basis for the decision."

Investors welcomed Hanwha Ocean's victory, as its share price surged 7.85% on the Seoul bourse Friday, while that of HD Hyundai Heavy edged up 0.62%. The broader KOSPI advanced 4.63%.

Copyright 2026 UPI News Corporation. All Rights Reserved.

This story was originally published June 12, 2026 at 8:47 AM.