HD Hyundai, Hanwha Ocean Vie for Nuclear Submarine Contract with Government
After issuing a bid notice for the nuclear-powered submarine project, the government plans to select a company around the second half of next year. The selection of the shipbuilder will be carried out through a “company-led competitive bidding” method.The Defense Acquisition Program Administration d
The South Korean government is set to decide on a shipbuilder for a massive nuclear submarine project, with two major contenders emerging: HD Hyundai Heavy Industries and Hanwha Ocean. The Defense Acquisition Program Administration (DAPA) announced its intent to choose a company through a competitive bidding process, rather than a private contract, in a move revealed on October 6th. The agency outlined the project's strategy in a meeting of the 179th Defense Acquisition Program Promotion Committee.
A crucial aspect of the submarine is the Small Modular Reactor (SMR), which will power the vessel and demands the highest level of security. The government plans to develop and secure this SMR and some key missiles directly, then provide them to the system integrator under a government-furnished equipment method. While HD Hyundai has been rapidly advancing its next-generation nuclear-powered vessel technology, Hanwha Ocean boasts valuable experience in constructing Jangbogo-III submarines and owns a U.S. defense network through Philly Shipyard.
Despite the DAPA withholding the total project cost due to its sensitive nature, estimates suggest it could range between 20-29 trillion won ($15-23 billion).
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