Full Steam Ahead
HD HHI and Hanwha Ocean, two arch-rivals in the Korean defense industry, are set to go head-to-head to take an 80 trillion won (US$62 billion) Canadian submarine project and a frigate order for the Korean Defense Acquisition Program Administration (DAPA).
HD HHI and Hanwha Ocean are both gearing up to compete for the Canadian Patrol Submarine Project (CPSP), according to industry sources on June 11. The Canadian Submarine Replacement Project will purchase up to 12 submarines for about 80 trillion won. It is expected to include full maintenance services and training programs.
Hanwha Ocean and HD HHI are waging a war of nerves by simultaneously signing a technical cooperation agreement with British defense firm Babcock on June 7 in order to export submarines to Canada. “The Canadian submarine project, which is expected to involve dozens of global defense companies, is virtually a competition among Korean and Japanese shipyards,” said a defense industry insider.
HD HHI and Hanwha Ocean are two rivals in the Korean defense industry. The biggest hurdle for Hanwha Group in its acquisition of Daewoo Shipbuilding & Marine Engineering (DSME) was its takeover of the specialty shipbuilding business to build battleships from DSME, as HD HHI did not want to see Hanwha Group become its competitor in the specialty shipbuilding business.
Competition is heating up in future ship technology, too. HD HHI is also working on the development of a Korean aircraft carrier. Although the Korean military has not decided to build an aircraft carrier, it has been under research and development for more than a decade. HD HHI began working with KAI in 2022 to develop a light aircraft carrier. Unmanned ships are also a key R&D item at HD HHI. HD HHI’s unmanned command and control ships are advanced vessels that conduct unmanned reconnaissance missions by utilizing unmanned aerial vehicles (UAVs), unmanned surface vessels (USVs), and unmanned underwater vehicles (UUVs).
Hanwha Ocean is developing the first joint strike ship to be introduced for the first time in Korea. Earlier this year, the company was selected by the Navy to design the concept of a joint strike ship. Joint strike ships are called a kind of maritime missile base and are expected to have Hyunmoo-2 ballistic missiles and Haesung-II fleet surface-to-surface cruise missiles. In addition, Hanwha is creating synergies with other Hanwha defense companies. Hanwha Aerospace is developing lithium battery systems for submarines and ships and gas turbine engines for warships. Lithium batteries are expected to boost submarine operational capabilities by three times compared to conventional lead acid batteries.