Korean companies compete for Poland submarine bid

A 2,300-ton submarine proposed by HD Hyundai Heavy Industries for Poland’s ‘Orka Project’. (HD Hyundai)

South Korean defense companies are competing in a global defense bid, raising concerns about overheated competition.

According to industry sources on Monday, HD Hyundai Heavy Industries and Hanwha Ocean are competing for Poland‘s Orka program, a project to acquire three conventional submarines. This is in contrast to European competitors, where a single company from each country receives full government support in the bidding process.

A senior government official revealed that the Polish government recently expressed concerns to Korea, questioning the viability of Korean companies’ offers amid intense competition.

While the Korean government hopes to support the companies as “one team,” it cannot proceed unless the companies reach an agreement. Calls for coordination between the companies and government involvement are growing, especially ahead of Polish President Andrzej Duda‘s visit to Korea on Tuesday.

Domestic competition is also a concern for upcoming global defense tenders, including Canada’s 60 trillion won ($43.5 billion) submarine project.

Meanwhile, domestic companies are also in disagreement over the project to supply the homegrown Cheongung-II air defense missile. Iraq agreed to purchase the medium-range surface-to-air missile in September 2024, but LIG Nex1 Co., and Hanwha Aerospace Co.-Hanwha Systems Co. have differing views on the delivery schedule. The Defense Acquisition Program Administration (DAPA) has stepped in to mediate between the companies after organizing a meeting later this month, adding that the relevant parties are engaged in working-level consultations and that it is closely monitoring the development.