Seoul: The state defense procurement agency has entered into a preliminary agreement with prominent shipbuilders Hanwha Ocean Co. and HD Hyundai Heavy Industries Co. to foster collaboration in warship export initiatives, officials have disclosed.
According to Yonhap News Agency, the memorandum of understanding (MOU) outlines a strategic partnership among the three entities to secure international warship contracts. Hanwha Ocean is set to spearhead submarine projects, while HD Hyundai Heavy will focus on surface ships, as stated by the Defense Acquisition Program Administration (DAPA).
DAPA emphasized that the collaboration will enable the shipbuilders to provide mutual support, with the expectation that this partnership will allow them to concentrate on their respective areas of expertise. This could potentially pave the way for further cooperative ventures, including joint development projects.
DAPA Minister Seok Jong-gun remarked in a release, "The MOU signing is expected to establish the foundation for joint growth in South Korea's defense industry."
The push for cooperation between the two shipbuilders follows their failure to be shortlisted for a significant Australian frigate contract the previous year, where they lost to Japan's Mitsubishi Heavy Industries and Germany's Thyssenkrupp Marine Systems.
The shipbuilders have been vigorously competing against each other for international warship projects and a next-generation destroyer project within South Korea. Earlier this month, the industry ministry selected both companies as final candidates for the Korea Destroyer Next Generation project, valued at 7.8 trillion won (US$5.45 billion), aimed at constructing six new destroyers.