South Korean Shipbuilders Form Alliance to Boost Naval Vessel Exports
South Korea’s Defence Acquisition Program Administration (DAPA) has signed a memorandum of understanding (MOU) with leading local shipbuilders Hanwha Ocean and HD Hyundai Heavy Industries (HHI) to create a strategic collaboration aimed at boosting the export of naval vessels. The agreement is expected to enhance South Korea’s footprint in the global defence market through a coordinated “One Team” approach.
The MOU, announced by DAPA, sets the stage for the integration of resources, technology sharing, and cooperative business strategies between the government and private sectors. The initiative is designed to leverage the complementary strengths of both shipbuilders—HHI’s expertise in surface ships and Hanwha Ocean’s specialization in submarines—to maximize export opportunities.
A “One Team” Strategy
Under the new framework, HHI will focus on the export of surface ships, while Hanwha Ocean will be responsible for submarine projects. The collaboration aims to streamline the business promotion process, increase efficiency, and provide potential foreign customers with advanced, South Korean-developed naval vessels.
DAPA emphasized that the partnership will not only boost sales but also promote mutual support between the two shipbuilders. This includes resource allocation, technology transfers, and coordinated marketing efforts, all of which are expected to create a more competitive edge for South Korea in the international naval defence sector.
“By combining the strengths of Hanwha Ocean and HHI, we aim to present a unified front to potential overseas clients,” a DAPA spokesperson said. “This collaboration is not just about increasing sales but also about establishing South Korea as a reliable and strategic supplier of advanced naval vessels.”
Expanding Global Presence
HHI has a strong track record in the export of naval ships. The company is currently involved in the construction of four new surface ships for the Peruvian Navy, a project that underscores its expertise in international defence contracts. Additionally, HHI has previously delivered new corvettes and frigates to the Philippine Navy, reinforcing its position as a trusted partner in the Asia-Pacific defence market.
The collaboration with Hanwha Ocean is expected to further elevate HHI’s international profile by broadening its capabilities to include submarine technology through the partnership. Meanwhile, Hanwha Ocean stands to benefit from HHI’s established global networks and experience in large-scale naval projects.
Strategic Implications
The South Korean government has increasingly emphasized defence exports as a key component of its broader economic strategy. By fostering collaboration between private companies and government agencies, the country aims to capture a larger share of the growing global defence market, particularly in regions like Southeast Asia, South America, and Europe.
The new partnership is also in line with South Korea’s ambition to become a top-tier defence exporter. The country has already achieved significant milestones in the defence sector, including the export of K9 self-propelled howitzers and FA-50 light attack aircraft to countries such as Poland and the Philippines.
The naval sector, in particular, presents substantial growth opportunities. As geopolitical tensions and maritime security concerns drive defence spending worldwide, demand for both surface ships and submarines is expected to rise. South Korea’s ability to offer a comprehensive portfolio of naval solutions through this “One Team” approach could make it a strong contender for international contracts.
Looking Ahead
While the MOU is a significant step forward, its success will depend on how effectively the parties can translate the agreement into real-world projects. Both HHI and Hanwha Ocean will need to demonstrate seamless collaboration, efficient project execution, and high-quality deliverables to win competitive bids in the international market.
DAPA, for its part, will play a critical role in facilitating governmental support, promoting collaborative offerings to foreign governments, and ensuring that South Korean naval vessels meet international standards.
As the partnership moves forward, industry watchers will be keen to see which markets and contracts the “One Team” targets first. If successful, this collaboration could set a precedent for future joint ventures in South Korea’s defence sector, driving further innovation and export growth.
Overall, the MOU between DAPA, Hanwha Ocean, and HHI represents a forward-looking strategy that could significantly enhance South Korea’s status as a global defence industry player. With careful execution and strategic marketing, the alliance could pave the way for new opportunities and strengthen the nation’s defence export portfolio.
