Hanwha Group has recruited former Minister of National Defense Seo Wook, who served during the Moon Jae-in administration, and with the Democratic Party of Korea lawmaker Ahn Gyu-baek being nominated as the candidate for Minister of National Defense, HD Hyundai Group, which is competing for the Korea Destroyer Next Generation (KDDX) project, is showing signs of vigilance. KDDX is a project that involves the deployment of six 6,000-ton domestically produced AEGIS destroyers by 2030 with an investment of approximately 8 trillion won.
HD Hyundai Heavy Industries argues that it should be responsible for the construction of the lead ship (Ship No. 1), as the company that has been performing the basic design has been entrusted with the detailed design and construction of the lead ship through a selective contract. However, due to the delay in contractor selection caused by the early presidential election earlier this year, the new Minister of National Defense will have to follow the selection process again once appointed. In the context of the delayed contractor selection, the fact that Hanwha Group has recruited a Democratic Party of Korea figure has raised concerns about potential impacts on the KDDX project.
Former Minister Seo has been working as a full-time advisor at Hanwha Aerospace since the 16th. This is the first instance of a former Minister of National Defense taking a job in a defense company. Seo was restricted from employment for three years following his resignation in May 2022 under the Public Officials Ethics Act.
Although former Minister Seo is treated at the level of a president, he reportedly does not participate in management and only provides advisory services focusing on export business. A Hanwha Aerospace official said, "During Seo’s tenure as Minister, the Ministry of National Defense played a significant role when countries like Egypt and Australia purchased K9 self-propelled guns. There was also military support when exporting Redback armored vehicles to Australia." Seo previously served as a member of the National Security Advisory Group for the presidential campaign of Lee Jae-myung.
HD Hyundai has been keeping a close watch on developments from Hanwha since Ahn Gyu-baek emerged as a candidate for Minister of National Defense. Ahn, who served five terms until the 22nd National Assembly, primarily worked on the National Defense Committee. He also held the position of chair of the National Defense Committee during the 20th National Assembly under the Moon Jae-in administration.
He is known to have a solid network within the military and defense industry due to his long-standing activities in the defense sector. While HD Hyundai has strengths in shipbuilding, it is evaluated as being unable to match the comprehensive network of Hanwha that spans across land, sea, and air.
A source within the defense industry said, "I understand that Ahn has sought policy advice from former Minister Seo and other current and former officials since he was mentioned as a civilian candidate for Minister of National Defense before the presidential election."
The KDDX project is in a state of drift due to conflicts between HD Hyundai Heavy Industries, which advocates for selective contracts, and Hanwha Ocean, which supports competitive bidding. The Defense Acquisition Program Administration had planned to select the company responsible for detailed design and construction of the lead ship at the committee meeting on April 4, but this was postponed after the presidential election.
Representative Bu Seung-chan, the Democratic Party of Korea's secretary of the National Defense Committee, also demanded the suspension of the promotion of a selective contract with a specific company at the Defense Acquisition Program Administration committee meeting scheduled for April 24. Ultimately, the Defense Acquisition Program Administration committee was unable to reach a conclusion, and the Ministry of National Defense decided to reassess the plan for advancing the KDDX project.