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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] HD Hyundai Heavy Industries has decided not to participate in the first-round bidding for South Korea’s next-generation destroyer (KDDX) detailed design and lead ship construction project, just one day before the submission deadline.
According to industry sources on May 14, the company opted out of the initial bid—set to close on May 15—to allow for further internal review, including legal and strategic considerations. However, it is expected to participate in subsequent bidding rounds.
Given the nature of the KDDX project, which follows a limited competitive bidding format, the absence of multiple bidders results in an automatic failure of the tender. The Defense Acquisition Program Administration confirmed that only one company had pre-registered, necessitating a re-tender in accordance with relevant laws and procedures.
The agency stated that the re-announced bid for the KDDX detailed design and lead ship construction project is scheduled for May 18, with a briefing session on May 26 and a submission deadline set for May 29. It added that the project will be managed transparently and efficiently to avoid further delays.
HD Hyundai Heavy Industries’ decision is closely linked to ongoing legal considerations. Earlier, the Seoul Central District Court dismissed the company’s injunction request against the procurement agency, which sought to block the alleged disclosure of trade secrets.
The company had argued that parts of the basic design deliverables contained proprietary technologies, advanced construction methods, and product specifications, and that sharing such information with competitors could lead to unfair competition. However, the court ruled that the documents had been delivered as contractual outputs and were therefore not subject to confidentiality obligations.
With the deadline to appeal the court’s decision set for May 16, the company is reportedly reviewing its legal options alongside its bidding strategy. Industry observers also note that the transfer of basic design data to competitor Hanwha Ocean has introduced additional variables requiring further review.
Despite skipping the first round, HD Hyundai Heavy Industries reaffirmed its intention to ultimately participate in the bidding process, stating that it needs additional time to assess all relevant factors.
The KDDX program involves the construction of six 6,000-ton Aegis-class destroyers equipped with domestically developed hulls and combat systems, with a total project cost of approximately KRW 7.44 trillion. The detailed design and lead ship construction phase alone is valued at KRW 882 billion, including value-added tax.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065615472661445
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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