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.
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.
HD Hyundai Heavy Industries completed the basic design of the HDS-1500MGP, a 1,500-ton class diesel-electric submarine offered to replace the Peruvian Navy's aging German-built boats, and is now aiming to convert it into a detailed-design and construction contract by the end of 2026, with full-scale construction slated to begin in 2027. Shin Hyung-sik, vice president of HD Hyundai Heavy Industries' Naval Ship Division, said that "if the government backs us with close cooperation, I am confident we can absolutely win the order," which would mark Korea's first submarine export in 15 years. The submarine effort builds on a joint development contract signed in December 2024 and a broader April 2024 partnership under which HD Hyundai is already building four surface vessels (worth about 640 billion won) for Peru. The push follows HD Hyundai's unsuccessful bid in Canada's patrol submarine competition, which Germany won. No construction contract has been signed yet — the year-end decision is the watch item.
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.
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.
Turkey's new Altai main battle tank has entered mass production using a Korean-made power pack after Ankara failed to develop its own engine system. The 1,500-hp power pack — originally developed by Doosan Infracore (now HD Hyundai Infracore) and integrated by Hanwha Aerospace — powers the 65-ton Altai, marking another win for Korean defense propulsion technology. Turkey had pursued indigenous engine development for years but ultimately selected the proven Korean system to avoid further delays to the program.
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.
The Ministry of National Defense released the "Basic Plan for the Development of the Republic of Korea Nuclear-Powered Submarine" (Jangbogo-N). The SSN program targets mid-2030s launch and late-2030s commissioning using low-enriched uranium fuel, to be built entirely domestically under IAEA safeguards. President Lee Jae-myung called to "accelerate the introduction of nuclear-powered submarines" the same day North Korea tested new tactical weapons.
Despite strong Korean defense industry presence, Malaysia's DSA 2026 exhibition (April 20-23) yielded fewer procurement contracts than previous editions. However, the event still produced notable deals including LIG D&A's landmark $94M K-SAAM Haegung export contract and contracts with HD Hyundai Heavy Industries. Boustead signed agreements with Korean and European firms. Lunas inked seven MOUs valued at RM300 million involving Hyundai Heavy Industries among others. Analysts noted that Southeast Asian procurement cycles are lengthening due to tighter defense budgets, though demand for affordable, rapidly deployable Korean systems remains strong.
HD Hyundai Heavy Industries, LIG Defense & Aerospace, and KAI have been increasingly coordinating to counter Hanwha Group's expanding dominance across land, sea, and air defense sectors. The three companies operated joint exhibition booths at both Sea-Air-Space 2026 in the US and World Defense Show 2026 in Saudi Arabia, while Hanwha's three defense units ran their own joint booths. The move follows a 2023 MOU on next-generation warship development that deliberately excluded Hanwha. In response, Hanwha has strengthened ties with US partners, signing agreements with Northrop Grumman (Hanwha Aerospace) and Leidos Gibbs & Cox (Hanwha Ocean) at SAS 2026.
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.
HD Hyundai Heavy Industries, LIG Nex1, STX Engine, and nine other Korean defense companies signed a joint MOU with Saudi Arabia's Ministry of Investment to establish a local Korean defense supply chain. The agreement aims to build manufacturing and sustainment infrastructure in the Kingdom.
HD Hyundai Heavy Industries pitched its 6,500-ton HDF-6000 export frigate for Saudi Arabia's next-generation surface combatant program at the World Defense Show 2026 in Riyadh. The frigate is capable of ballistic missile defense, deep-strike operations, and multi-domain warfare, developed using experience from ROK Navy Sejong-class and Jeongjo-class destroyers. HD HHI signed an MOU with the Saudi Ministry of Investment and 12 Korean partner firms to develop a local supply chain supporting Saudi localization requirements.
South Korea began exporting the domestically developed DV27K 1,500hp diesel engine, ending dependence on foreign powerplants for K2 tank exports. HD Hyundai secured contracts to supply 116 engines for Poland's second batch of K2s and to be the sole engine provider for Turkey's Altay main battle tank. This gives Seoul full authority over armored vehicle exports without requiring third-party clearance.
HD Hyundai Heavy Industries signed a contract with the Peruvian Navy to jointly develop next-generation submarines — the company's first-ever submarine export deal. The basic design phase began in January 2026 for an 11-month period. This is separate from the existing 4-vessel surface combatant project (frigate, patrol vessel, landing craft) worth 640 billion won with Peru.