HD Hyundai Heavy Industries begins construction of final next-gen Aegis destroyer.

According to a PR published by HD Hyundai Heavy Industries (HD HHI) on October 18, 2024, the company has started construction on the last of three next-generation Aegis destroyers, part of South Korea’s Korean Air and Missile Defense (KAMD) system.
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First South Korean KDX III Batch II destroyer ROKS Jeongjo the Great. (Picture source: South Korean MoD)

The groundbreaking ceremony for the third ship took place on Thursday, October 17, at the company’s Ulsan headquarters, with officials from the Defense Acquisition Program Administration (DAPA), the Defense Agency for Technology and Quality (DTaQ), and the Defense Rapid Acquisition Technology Research Institute in attendance. This final destroyer is expected to be delivered to the Republic of Korea Navy by late 2027.

The destroyer belongs to the Jeongjo the Great-class, also known as the KDX-III Batch-II, which is the largest naval vessel in the South Korean fleet. Measuring 170 meters in length and 21 meters in width, and displacing 8,200 tons, the vessel will be capable of reaching speeds up to 30 knots (approximately 55 km/h). It will be powered by four gas turbine engines, complemented by two 1.7 MW electric propulsion motors designed for fuel efficiency.

The new class of destroyers will feature significant upgrades over the first-generation Sejong the Great-class, including enhanced ballistic missile interception capabilities and improved anti-submarine warfare (ASW) performance, positioning the vessels as key assets in South Korea’s maritime defense strategy. The destroyer’s armament will include ship-to-ground ballistic missiles, long-range surface-to-air missiles, and both heavy and light torpedoes. It will also be equipped with an advanced Aegis combat system, multifunction phased-array radar, electro-optical tracking devices, and integrated sonar systems.

HD HHI is set to deliver the lead ship, ROKS Jeongjo the Great, to the Navy next month, while the second ship will follow by late 2026. In April, ROKS Jeongjo the Great successfully demonstrated its combat capabilities during live-fire tests.

HD HHI vs Hanwha Ocean

The competition between HD Hyundai Heavy Industries (HHI) and Hanwha Ocean has intensified across several sectors, including warship construction, maintenance, and defense contracts. Both companies have been vying for dominance in the naval shipbuilding industry, particularly in South Korea and the U.S., where lucrative contracts are at stake.

Both companies secured certifications from the U.S. Naval Supply Systems Command to participate in maintenance, repair, and overhaul (MRO) projects for U.S. Navy warships. This move has positioned them as key players in a market that is experiencing growing demand. Hanwha Ocean, which rebranded after its acquisition of Daewoo Shipbuilding, has made significant investments, including a joint purchase of the Philly Shipyard. Meanwhile, HD HHI has expanded its expertise in warship exports and MRO work, supported by its success in the Philippines and partnerships with U.S. firms like Lockheed Martin.

A focal point of their competition is South Korea’s multi-billion-dollar Korea Destroyer Next Generation (KDDX) project, which has been delayed due to legal issues involving allegations of corruption and data theft. Hanwha Ocean accused HD HHI of misusing sensitive military information, sparking a legal battle that has complicated the procurement process.