Hanwha Ocean signs $600M deal to build two Navy frigates

Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, signed a 790-billion-won ($600 million) deal with the domestic state defense procurement agency to build two next-generation frigates for the country's Navy.

A model of Korea's 3,600-ton, next-generation frigate with enhanced anti-submarine and anti-air capabilities [YONHAP]

Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, signed a 790-billion-won ($600 million) deal with the domestic state defense procurement agency to build two next-generation frigates for the country's Navy.

In July, the Defense Acquisition Program Administration (DAPA) selected Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, as the preferred bidder for the military ships.

Back then, Hanwha Ocean beat its bigger domestic rival, HD Hyundai Heavy Industries, in the auction to build the Navy's fifth and sixth Ulsan-class frigates with enhanced anti-submarine and anti-air capabilities.

It was the first time for Hanwha Ocean to beat HD Hyundai Heavy in bids for military ships since its recent acquisition by defense-to-energy conglomerate Hanwha Group.

The fifth and sixth frigates will be delivered to the Navy in December 2027 and June 2028, the company said in a statement.

The warships will be built as part of Seoul's frigate acquisition program, code-named FFX Batch-III, under which the country plans to build six 3,600-ton frigates to replace dated frigates and corvettes.

BY PARK EUN-JEE, YONHAP [park.eunjee@joongang.co.kr]