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[iNews24 Reporter Choi Ran] HD Hyundai Heavy Industries announced it will not submit a bid in the first round of the Korean Next-Generation Destroyer (KDDX) detailed-design and lead-ship construction competition, one day before the submission deadline.
Industry sources said on May 14 that HD Hyundai decided to skip the first-round submission, which closes on May 15, to conduct further review of the KDDX program. The company said it still intends to participate during the later proposal phase.
Under the project’s designated competitive-bidding rules, the tender would be void if fewer than two firms submit bids.
A Defense Acquisition Program Administration (DAPA) official said, “Only one company pre-registered for the KDDX detailed-design and lead-ship construction bid, so we will reannounce the bid in accordance with relevant laws and procedures.” The official added that DAPA will actively manage the program to ensure transparency, legality and fairness and to prevent further delays.
The reannounced bid is scheduled for May 18, with a project briefing set for May 26 and a revised bid deadline of May 29.
Industry observers say HD Hyundai’s decision was driven in part by concurrent legal considerations. Earlier, Civil Division 60 of the Seoul Central District Court denied an injunction HD Hyundai filed seeking to block what it alleged would be trade-secret misuse by DAPA.
HD Hyundai argued that elements of the basic-design deliverables—including construction methods, proprietary technologies and product specifications—contain company trade secrets, and that sharing them with competitors would create unfair competition. The court rejected the injunction.
The court ruled that the KDDX basic-design documents DAPA provided to Hanwha Ocean were delivered as contract deliverables and therefore were not subject to confidentiality obligations.
With the appeal window for that ruling running through May 16, HD Hyundai said it needs time to review its overall legal and bidding strategy, including whether to appeal.
Industry sources also noted that because the basic-design materials are already in Hanwha Ocean’s possession, there are additional variables to consider, which influenced HD Hyundai’s decision not to participate in the first round.
Still, HD Hyundai has indicated it ultimately plans to join the procurement process.
An HD Hyundai official said, “We are preparing to participate in the bid, but we need more time to review all relevant conditions.”
The KDDX program will build six 6,000-ton-class Aegis-equipped destroyers that will use domestically developed hulls and combat systems. The total project budget is KRW 7,043,900,000,000 (approximately 7.0439 trillion KRW; approximately $5,282,925,000). The detailed-design and lead-ship construction contract is valued at KRW 882,000,000,000 (approximately 882 billion KRW), approximately $661,500,000 including VAT.
Hanwha Ocean handled the concept design while HD Hyundai performed the basic design. In December, the Defense Acquisition Program Administration’s procurement committee decided to select the contractor through a designated competitive bidding process.
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