The Royal Thai Navy has completed its evaluation of bids for a new 4,000-ton frigate, worth roughly 175 billion baht (~800 billion won) and expandable toward 4 trillion won with follow-on ships, and Korean reporting on September 1, 2026 says Hanwha Ocean was the only bidder to clear the first qualification and technical round. The result has been forwarded to the Thai Defense Ministry and cabinet for final approval, with an announcement expected within days. Hanwha Ocean holds an edge from its 2018 delivery of the 3,700-ton HTMS Bhumibol Adulyadej and its improved Ocean-40F export design, while HD Hyundai Heavy Industries countered with a roughly 40% local-production pitch. No final signature had been confirmed as of September 3.
The US Navy on September 1, 2026 began formal evaluations of three allied frigate designs, including South Korea's 4,300-ton Chungnam-class (FFX Batch III), alongside Japan's Mogami-class and Turkiye's Istanbul-class, USNI News reported. The plan, set out in an August 13 procurement framework with $1.85 billion in FY2027 funds, is to buy up to two ships from a foreign builder before transferring construction to US yards, with a selection deadline of November 12, 2026. The Chungnam-class is built by HD Hyundai Heavy Industries, SK Oceanplant, and Hanwha Ocean and features CODLOG propulsion with a Rolls-Royce MT30 gas turbine, a 30-knot top speed, and a strong anti-submarine fit. A US selection would be the first American purchase of a Korean-designed warship and would build on Hanwha's Philly Shipyard investment and the growing US-Korea shipbuilding partnership.
The Defense Acquisition Program Administration officially signed the detailed design and lead-ship construction contract for the Korean Destroyer Next Generation (KDDX) program with Hanwha Ocean on July 31, 2026. The lead-ship contract is worth KRW 837.9 billion (~$587 million) within a roughly KRW 7.8 trillion ($5.4 billion) six-ship program. The ~7,000-ton KDDX will be South Korea's first destroyer with a fully domestic combat system — including indigenous combat management, multifunction radar, and sonar — with the first vessel due for delivery to the ROK Navy by 2032. The signing formalizes Hanwha Ocean's June evaluation win over HD Hyundai Heavy Industries and moves the long-delayed program into the construction phase.
Hanwha Aerospace reported record second-quarter results on July 31, with consolidated operating profit of 1.37 trillion won (~$951 million) — the first time its quarterly operating profit surpassed 1 trillion won — on sales of 9.29 trillion won, up 47% year-on-year. The land systems division earned 533 billion won in operating profit on steady K9 and Chunmoo deliveries at home and abroad, while Hanwha Ocean posted its strongest quarter since joining the group (5.44 trillion won in sales, 736.1 billion won operating profit, up 98%) and Hanwha Systems chipped in a record 103.7 billion won. Shares rallied on the results, which cement Hanwha Aerospace's position as the earnings engine of Korea's defense export boom.
HD Hyundai Heavy Industries and Hanwha Ocean are jointly targeting Saudi Arabia's naval procurement programs, positioning the effort as a test of whether South Korea's shipbuilders can develop a cooperative export model for large international defense contracts rather than competing head-to-head abroad. The push follows both firms' World Defense Show 2026 activity — HD HHI pitched its 6,500-ton HDF-6000 export frigate for Saudi Arabia's next-generation surface combatant program, and Korean partners signed a supply-chain MOU with the Saudi Ministry of Investment to support Vision 2030 localization requirements. The Saudi effort is expected to serve as a bellwether for Korea's ability to structure collaborative, rather than rivalrous, bids on major overseas naval tenders.
The Royal Thai Navy is expected to name a preferred bidder within the month for a 4,000-ton frigate with a budget of about 17.5 billion baht ($523 million), potentially expanding to roughly $2.7 billion with three follow-on ships. Thailand is reportedly leaning toward Hanwha Ocean's Ocean-40F design over HD Hyundai Heavy Industries and Turkey's ASFAT, though no official winner had been announced as of July 17. HD Hyundai reportedly offered around 40 percent local content against a 20 percent requirement. The competition remains a pending selection, not a signed deal.
President Donald Trump said the U.S. will “probably” look at Korean and other companies for shipbuilding cooperation to reinforce the U.S. Navy, speaking at the Defense and Innovation Summit at the U.S. Army War College in Carlisle Barracks, Pennsylvania. The remarks follow the U.S. Navy issuing requests for information to leading Korean shipbuilders on their capacity to rapidly build destroyers and oilers, and build on the Trump–Lee agreement to deepen shipbuilding cooperation. Hanwha appears best positioned in the near term as the only Korean firm already owning a U.S. yard, having acquired Philly Shipyard for $100 million in December 2024 and working through the licensing needed to build combat ships domestically; Hanwha Defense USA president and CEO Michael Coulter told the summit that “our shipyard in Korea puts out about one ship a week. We have a plan to bring that capability to Philadelphia.” The push sits within the MASGA project, under which Seoul agreed to invest $150 billion toward revitalizing U.S. shipbuilding as part of a broader $350 billion U.S. investment package.
Canada selected Germany's Thyssenkrupp Marine Systems (TKMS) as preferred supplier for the Canadian Patrol Submarine Project on July 7, ending Hanwha Ocean's bid to build up to 12 diesel-electric submarines under the ~C$60 trillion won ($39B) program. Prime Minister Mark Carney announced the decision ahead of the NATO summit in Ankara. TKMS prevailed by emphasizing its status as a NATO ally already supplying European navies and offering a larger economic package. Hanwha Ocean — which had signed partnerships with 80+ Canadian firms and pledged C$70B in economic benefits and a first-boat delivery by 2032 — was designated the reserve supplier, retained as an alternative if TKMS falters. Hanwha Ocean shares fell more than 23% on the news. The loss is a setback for Korea's NATO-market naval export ambitions, though analysts note the local partnership network and reserve status preserve a future path.
President Lee Jae Myung will attend the July 7–8 NATO summit in Ankara, Turkey, with a focus on deepening defense and economic cooperation with member states and promoting K-defense capabilities. Lee will deliver keynote remarks at the NATO Defense Industry Forum during the "Shared Values, Stronger Industrial Foundations" session, highlighting Korean defense products' rapid delivery timelines and competitive pricing. The visit coincides with Canada's imminent selection of a submarine supplier — a CA$60 billion decision between Hanwha Ocean and Germany's TKMS expected before the summit.
DAPA officially confirmed Hanwha Ocean as the preferred bidder for the KRW 7.8 trillion ($5.1B) KDDX next-generation destroyer program on July 2, after rejecting an objection filed by rival HD Hyundai Heavy Industries. Hanwha Ocean edged out HD Hyundai by 0.58 points after a 1.2-point security penalty was applied to HD Hyundai for employees convicted of leaking KDDX research materials. DAPA aims to finalize negotiations and sign the contract for the six-ship program of 6,000-ton fully indigenous destroyers.
|Korea Herald / Korea Times / Seoul Economic Daily
Competing proposals in the US Congress could determine how extensively South Korean shipbuilders participate in future US Navy construction. The House Armed Services Committee approved a fiscal 2027 defense authorization bill on June 5 that includes Rep. Jared Golden's amendment prohibiting Navy funding for battle force ships and major components built at foreign shipyards. The Senate Armed Services Committee took a different approach on June 11, allowing the Pentagon to procure up to two bulk fuel vessels and two strategic sealift vessels from allied foreign shipyards. The outcome will shape the direction of Korea-US shipbuilding cooperation, as Hanwha Ocean's Philadelphia shipyard investment and HD Hyundai's HII partnership both hinge on the final legislation.
Canada's defense minister confirmed the $42.2 billion Canadian Patrol Submarine Project will go to a single supplier, with a decision expected before PM Carney departs for the NATO summit in Ankara on July 7. Hanwha Ocean faces Germany's TKMS in the final round to build up to 12 diesel-electric submarines. Hanwha has signed partnerships with 80+ Canadian firms, pledging C$70B in economic effects and 25,000 annual jobs. A Korean win would be the largest naval export in K-defense history and could open follow-on bids in Greece and Saudi Arabia.
DAPA selected Hanwha Ocean as the preferred bidder for the KDDX next-generation destroyer program on June 11, 2026. The six-ship program covers 6,000–6,500-ton surface combatants valued at KRW 7.8 trillion ($5.1B) for air defense, ASW, strike, and escort. Hanwha Ocean scored 93.9542 vs HD Hyundai Heavy Industries' 93.3675. HD Hyundai led on technical score but received a 1.2-point security-related deduction. DAPA aims to complete negotiations and sign the contract in July 2026. This will be Korea's first fully indigenous destroyer.
DAPA opened bidding for the KDDX next-generation destroyer program, distributing RFPs to HD Hyundai Heavy Industries and Hanwha Ocean on March 26, 2026. The program covers six 6,000-ton class destroyers at ~KRW 7.04 trillion ($4.9B), with contractor selection targeted for July 2026. This will be Korea's first fully indigenous destroyer.
The Philippines has signed a contract with Hanwha Ocean for two HDC-3100 corvettes to modernize the Philippine Navy's surface fleet. The 3,100-ton vessels will be the most capable warships in the Philippine fleet.
Hanwha Group completed its acquisition of Daewoo Shipbuilding & Marine Engineering (DSME), rebranding the company as Hanwha Ocean. The move strengthens Hanwha's position in both commercial shipbuilding and naval defense.