Dispute Over Design Data Affects Korea's Next-Gen Destroyer Program
Legal issues surrounding design data in Korea's KDDX project threaten to delay the bidding process for six Aegis-class destroyers. Valued at approximately 7.8 trillion won ($5.1 billion), the conflict raises questions about data ownership and its implications for fair competition in defense contracts.
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The Korea Destroyer Next Generation program (KDDX), which aims to build six Aegis-class destroyers, faces legal disputes over design data impacting the bidding process. The Defense Acquisition Program Administration (DAPA) has shifted to an open bidding format, prompting Hanwha Ocean to demand access to existing design data to formulate a competitive bid.
However, HD Hyundai Heavy Industries seeks to block data release, citing competitiveness concerns. Experts indicate that the current ambiguity regarding design ownership complicates the situation, as the government funded the project but relies on industry expertise. Legal challenges could potentially disrupt timelines and costs, affecting the overall project execution.
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