Why HD Hyundai Heavy Industries Focuses on 'Surface Ships' and Hanwha Ocean on 'Submarines'

[Korea Financial Times, Shin Haeju] HD Hyundai Heavy Industries (Co-CEOs Lee Sang-kyun and Roh Jin-yul) and Hanwha Ocean (CEO Kim Hee-cheol) announced last month that they would cooperate as 'one team' for naval vessel export projects. They agreed to take the lead in business areas where each has strengths compared to their competitors, with HD Hyundai Heavy Industries overseeing surface ship exports and Hanwha Ocean managing submarine export projects. What are the strengths of these two companies?

HD Hyundai Heavy Industries is the only company that has performed all basic designs for the Aegis destroyers, the most advanced destroyers currently in service in Korea. The company began research and development of combat ships 51 years ago. In 1976, it built the Ulsan-class frigate, the first domestically produced combat ship in South Korea.

In 2003, the company built the 4,400-ton (t) Chungmugong Lee Sun-sin class destroyer KDX-II, an Aegis destroyer known as the "Shield of Athena." The KDX-II is equipped with a 5-inch gun, long-range anti-submarine torpedoes, ship-to-ship and ship-to-air guided missiles, anti-ship missile defense missiles, light torpedoes, and a close-In Weapon System(CIWS). Notably, it was the first South Korean Navy vessel to apply stealth design, reducing radar reflectivity to make it difficult for enemy ships to detect.
In 2007, HD Hyundai Heavy Industries built the first 7,600-ton (Sejong the Great-class) Aegis destroyer, the KDX-III B-I. It became the third country in the world, after the United States and Japan, to independently construct an Aegis destroyer.

The company also built the 8,200-ton (Jeongjo the Great-class) next-generation Aegis destroyer KDX-III B-II, which was introduced by the Navy last year. This model enhanced ballistic missile interception capabilities, incorporated advanced radar, and applied domestic weapon systems compared to its predecessor.

HD Hyundai Heavy Industries has also built all versions of the Ulsan-class frigates, including Batch-I, II, and III. The latest frigate, the Ulsan-class Batch-III lead ship Chungnam, delivered to the Navy at the end of last year, is equipped with the Aegis combat system and missile defense capabilities.

Hanwha Ocean has participated in various next-generation submarine projects. The submarines it has built include the Chang Bogo-class, Son Won-il class, Type 214, and KSS-III.

The Chang Bogo-class submarine, the first domestically produced submarine built by Hanwha Ocean in 1990, is a diesel-electric propulsion submarine. It is capable of performing various missions including anti-submarine operations, anti-ship attacks, and intelligence gathering.
In 2007, the company produced the Son Won-il class submarine, a successor to the Chang Bogo-class. It is equipped with an Air Independent Propulsion (AIP) system, allowing for extended underwater operations, and features improved noise reduction technology for covert operations, evading enemy detection.

The Type 214 submarine, which can operate underwater without oxygen for longer periods than the Son Won-il class, was developed in technical cooperation with Germany's HDW. It has a more efficient AIP system compared to the Son Won-il class and is capable of high-speed submersion.

The 3,000-ton class KSS-III, a next-generation submarine delivered to the Navy in 2020, boasts higher performance compared to existing submarines. It has a larger displacement than the Type 214 and superior performance in terms of AIP and detection systems, as well as armaments.

Hanwha Ocean also participated in the Seoul-class destroyer projects KDX-I, KDX-II, and KDX-III. While HD Hyundai Heavy Industries focused on ship construction, Hanwha Ocean primarily contributed technical expertise. Hanwha Ocean was responsible for developing military systems related to weapon systems, electronic warfare and missile systems, and overall system integration for the entire KDX series.
Shin Haeju (hjs0509@fntimes.com)