South Korea Moves Toward Autonomous Naval Capabilities with Hyundai’s New Unmanned Surface Vessel.

On April 22, 2025, HD Hyundai Heavy Industries (HD HHI) announced it has secured a landmark contract from the Republic of Korea Navy (ROKN) to develop a concept design for a next-generation combat Unmanned Surface Vessel (USV). This development, reported by South Korean newspaper website "Korea JoongAng Daily", marks HD HHI’s formal entry into the competitive and fast-evolving field of autonomous naval systems.
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South Korea is advancing its naval capabilities through a range of unmanned surface vehicle (USV) programs. Pictured here is a scale model of the Sea Sword III, developed by LIG Nex1. (Picture source: Army Recognition Group)

The envisioned multipurpose USV (Unmanned Surface Vessel) is expected to perform a wide array of missions, including reconnaissance and close-range combat operations in contested maritime environments. HD HHI plans to leverage artificial intelligence, autonomous navigation, and electric propulsion technologies to deliver a highly capable and adaptable vessel. Joo Won-ho, head of HD HHI’s Special Ship Business Division, highlighted the company’s strategic ambition to provide a comprehensive roadmap for next-generation combat USVs by integrating these advanced capabilities.

This initiative is aligned with the broader modernization strategy of the Republic of Korea Navy (ROKN), which is rapidly expanding its unmanned systems portfolio. Under its “Navy Sea Ghost” initiative, the ROKN is developing a family of unmanned systems including USVs, Unmanned Underwater Vehicles (UUVs), and Unmanned Aerial Vehicles (UAVs). These technologies are central to the Navy’s plans to enhance operational efficiency and offset declining manpower. At the recent Drone Show Korea 2025, the ROKN showcased a new mine warfare USV concept, designed for mine detection and clearance, underlining the practical utility of unmanned platforms in safeguarding maritime zones.

South Korea’s naval defense industry has grown into a regional powerhouse over the past two decades, driven by strategic imperatives and a robust technological base. Alongside HD HHI, companies such as Hanwha Systems and LIG Nex1 have played instrumental roles. Hanwha’s pioneering work on the “Aragon-1” in 2011 and LIG Nex1’s development of the “Haegum” USV series demonstrate the country’s longstanding commitment to unmanned maritime innovation. These developments reflect South Korea’s broader ambition to become a leading exporter and operator of autonomous naval platforms.

The global context further underscores the importance of this shift. Worldwide, the naval defense sector is experiencing a dramatic transformation with the accelerated adoption of unmanned and autonomous technologies. According to recent industry analyses, the global USV market is projected to grow from $1.1 billion in 2024 to over $2.5 billion by 2034, driven by increasing demand for cost-effective, risk-reducing maritime solutions. The effectiveness of USVs in real-world operations—such as Ukraine’s use of the Magura V5 USVs for coastal defense—has spurred renewed interest in these platforms among NATO and Asia-Pacific navies alike.

Major naval powers are racing to integrate these systems into their fleets. The U.S. Navy, for instance, aims to deploy 150 USVs by 2045 as part of its distributed maritime operations strategy. These platforms promise enhanced surveillance, electronic warfare, anti-submarine, and mine countermeasure capabilities without risking crewed assets in high-threat environments.

South Korea's embrace of autonomous maritime technologies is both timely and strategic. With the establishment of a dedicated unmanned maritime command envisioned by the 2040s, the ROKN is setting the stage for a significant transformation in force structure and operational doctrine. HD HHI’s new USV project is emblematic of this transformation and is bolstered by recent international collaborations, including a partnership with U.S.-based defense technology firm Anduril Industries to co-develop advanced unmanned platforms.

As geopolitical tensions heighten in the Indo-Pacific and as naval warfare increasingly shifts toward autonomy and distributed operations, South Korea’s investment in USV technologies places it at the forefront of global maritime innovation. The outcome of HD HHI’s concept development effort will likely shape not only the future of the ROKN but also influence regional defense cooperation and technology transfer dynamics in the years to come.