HD Hyundai, LIG, and KAI Team Up for 'Futuristic Unmanned Vessel Project' — Hanwha Left Out?

[Korea Financial Times, Shin Haeju] HD Hyundai Heavy Industries and Hanwha Ocean are taking different paths regarding the future unmanned vessel project. HD Hyundai Heavy Industries opts for partnerships, while Hanwha Ocean pursues an independent route.

On the 28th, at MADEX, the largest international maritime defense industry exhibition held in Busan, HD Hyundai Heavy Industries officially announced its collaboration with LIG Nex1 and Korea Aerospace Industries (KAI) to develop hardware and operating systems for future unmanned vessels, which will be core assets of the Navy's manned-unmanned combined system. The three companies signed a strategic partnership for the development of a "multi-purpose unmanned power flagship."

Although still at the memorandum of understanding (MOU) stage, specific plans have not been disclosed. However, since HD Hyundai Heavy Industries conducted research on an unmanned power command ship in 2022, it is expected to take charge of system integration in this collaboration. LIG Nex1 and KAI are anticipated to be responsible for missile integration systems and unmanned aerial vehicle development, respectively.
HD Hyundai Heavy Industries jointly operated a booth with LIG Nex1 and held a reception event together. At the event, HD Hyundai Senior Vice Chairman Chung Ki-sun and LIG Nex1 CEO Shin Ik-hyun appeared side by side. This was Chung's first attendance at MADEX this year.

On the other hand, Hanwha Ocean showed cooperation within its group affiliates. Hanwha Group Vice Chairman Kim Dong-kwan also appeared at the event, marking his second visit following last year.

Hanwha Ocean is developing a "combat unmanned surface vessel" together with Hanwha Systems and Hanwha Aerospace. Hanwha Ocean is responsible for the hull, Hanwha Systems for combat systems and manned-unmanned combined system operation technology using low earth orbit satellite communications, and Hanwha Aerospace for missile launcher development.

A Hanwha Ocean official explained, "Hanwha Systems is the first company in Korea to develop unmanned surface vessels. It participated as a consortium in the research and development project of Korea's first unmanned surface vessel, 'Aragon 1,' in 2011, and developed 'Aura' through its own investment in 2018."

Such moves by key domestic companies in the maritime and defense sectors are not new.
Currently, Hanwha Ocean and HD Hyundai Heavy Industries are competing over the Korean Destroyer Experimental (KDDX) project. The selection process for the KDDX project has been delayed for over a year due to disputes, including lawsuits. Hanwha Ocean prefers competitive bidding, while HD Hyundai Heavy Industries favors direct contracts.

Hanwha Systems, Hanwha Aerospace, and LIG Nex1 also engaged in disputes last year over the export contract of the M-SAM II medium-range interceptor system with the Iraqi Ministry of Defense.

The issue arose when LIG Nex1 signed the contract with Iraq. The M-SAM II is a joint product of LIG Nex1 and Hanwha. LIG Nex1 produces missiles and integrated systems, Hanwha Systems produces radars, and Hanwha Aerospace manufactures launchers and vehicles.

However, it is claimed that LIG Nex1 did not have prior agreement with Hanwha regarding price and delivery before signing the contract. LIG Nex1, on the other hand, stated that it requested Hanwha to review the contract just before signing but did not receive sincere cooperation. It is known that practical discussions on this matter are still ongoing.

Shin Haeju (hjs0509@fntimes.com)