The South Korean defense industry, which primarily exports ground weapons such as the K9 self-propelled howitzer and K2 tank, is challenging itself in submarine exports. The last submarine contract was with Daewoo Shipbuilding & Marine Engineering in 2011, when three submarines were contracted with Indonesia. The Defense Acquisition Program Administration and the defense industry plan to expand their export targets to include maritime areas such as submarines, as many countries are promoting the enhancement of their defense capabilities worldwide.
According to military and defense industry sources on the 14th, Poland is expected to announce its selection of the priority negotiation partner for the Orca project, which involves the introduction of three submarines of 3,000 tons (t), within a month. The Orca project includes maintenance, repair, and overhaul (MRO), with the total project scale estimated at approximately 8 trillion won.
Hanwha Ocean and HD Hyundai Heavy Industries have jointly entered the bidding process. Hanwha Ocean, which has been collaborating with local defense corporations since last year, proposed submarines larger than 3,000 tons, while HD Hyundai Heavy Industries suggested a 2,300-ton submarine model. Both companies also revealed additional investment plans, such as establishing local MRO facilities in Poland. The government has also visited Poland, emphasizing quick delivery and cost-effectiveness.
Both Hanwha Ocean and HD Hyundai Heavy Industries can build 3,000-ton submarines, and if they jointly win the bid, they can work simultaneously at two locations, thereby accelerating the delivery schedule.
Hanwha Ocean and HD Hyundai Heavy Industries also participated as a one team in the Canadian Navy's submarine procurement project. The two companies signed a memorandum of understanding, led by the Defense Acquisition Program Administration, in February for the formation of a one team for ship export projects.
The project scale is estimated to be as high as 60 trillion won. Hanwha Ocean and HD Hyundai Heavy Industries recently submitted an unsolicited proposal (a document describing submarine specifications and delivery timing) to the Canadian government. While the specific project schedule has not been finalized, it is projected to start around next year.
The reason the government and industry are responding together is to increase the likelihood of winning the bid. The history of South Korean submarines is relatively short compared to competitor nations. South Korea developed its first submarine in the 1980s by imitating German designs, more than 100 years later than France, which built its first submarine in the 1860s.
The 3,000-ton submarine Dosan Ahn Chang-ho, equipped with a submarine-launched ballistic missile (SLBM) launch pad, is regarded as a new-style submarine and was developed in 2018, having a relatively short operational history.
An official from the military noted, 'The localization rate of the Dosan Ahn Chang-ho has increased to about 75%, allowing us to promote exports,' and added, 'Cooperation between the government and companies is essential for submarine exports, even in challenging circumstances.'
Hanwha Ocean and HD Hyundai Heavy Industries are promoting submarine exports targeting Middle Eastern and Latin American countries, including Saudi Arabia, Peru, Colombia, and Ecuador.