Ahead of the Defense Acquisition Program Administration (DAPA)’s deliberations on slapping bidding restrictions on HD Hyundai Heavy Industries, Representative Seo Il-joon called for strict deliberations, saying, “The deliberations should be used as an opportunity to lay a foundation for the Korean defense industry.”
“The theft case of military secrets of a next-generation Korean destroyer (KDDX) should be used as an opportunity to rectify the foundation for the Korean defense industry,” Seo said in a press release on Feb. 20. “The Korean defense industry has a solemn and fundamental duty to protect the lives of the Korean people and the territory of Korea.”
“The deliberations on putting restrictions on eligibility to participate in tenders to be held by DAPA on Feb. 27 will be the first step on the way to raising the status of the Korean defense industry,” Seo said. “Fair and strict deliberations should be carried out and prompt follow-up measures should be taken in accordance with the DAPA Act.”
Previously, employees of HHI (now known as HD HHI) secretly acquired a conceptual design of the KDDX made by Daewoo Shipbuilding & Marine Engineering (now known as Hanwha Ocean). The case was uncovered during a random security inspection by the Defense Counterintelligence Command (DCC) in 2018. The employees were put on trial and convicted in November 2023.
In response, DAPA cut HD HHI by 1.8 points in tenders to be held by DAPA. It considered sanctioning HD HHI but postponed it once. It is scheduled to hold a contract review committee to deliberate on the debarment of HD HHI’s participation in tenders on Feb. 27.
Meanwhile, HD HHI and Hanwha Ocean are engaging in an off-market war of nerves ahead of DAPA’s deliberations. National Assembly members Lee Chae-ik and Kwon Myung-ho held a press conference on the same day, arguing that the DAPA should allow HD HHI to participate in the tender.