HD Hyundai, Hanwha on edge as KDDX probe nears conclusion


South Korea's shipbuilding industry is waiting for the conclusion of a high-profile police investigation into alleged corruption related to the Korea Destroyer Next Generation (KDDX) project, with the results expected by mid-September. The outcome will determine if the delayed selection process for the multi-billion-dollar naval project can proceed. The investigation focuses on allegations of corruption in the bidding process and the theft of classified military data, leading to significant delays in the KDDX program and creating tensions between the major shipbuilders, HD Hyundai Heavy Industries and Hanwha Ocean. The investigation revolves around two main allegations: first, the manipulation of the tender process to favor HD Hyundai, and second, the theft of military data from Hanwha Ocean. The delays in the KDDX project have also sparked a rivalry between the two shipbuilders, with HD Hyundai and Hanwha Ocean in a dispute over the contract decision process. HD Hyundai argues for a sole-source contract, while Hanwha Ocean insists on a competitive bidding process to ensure integrity. The outcome of the investigation will determine the future of the KDDX project, with potential implications for both companies and the overall naval modernization strategy in South Korea.


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