Following the news that LIG Nex1 would concentrate in developing solutions for the Republic of Korea’s next Korean Destroyer (KDDX);

Mathew George, Ph.D., Aerospace & Defense Analyst at GlobalData, a leading data and analytics company, offers his view:

“LIG Nex1’s announcement that it would develop solutions for the KDDX program is on par with the interest the government was hoping to generate and develop from the local defense industry.

“While the solutions that LIG Nex1 provide can be integrated to the designs and capabilities by any of the shipbuilders in Korea, it can be assumed that their involvement will form an integral part of the submission by Daewoo Shipbuilding and Marine Engineering.

“The two worked previously with the performance improvement plan of the Chang Bogo-I submarines and LIG Nex1 brings to the fold its locally developed arranged active phased array radar, Artillery Detection Radar-II. A host of other technologies that have been developed at the National Defense Research Institute in Korea with LIG Nex1 gives it an advantage in the kinds of devices and command systems that can be a part of the final KDDX program.

“As highlighted earlier by GlobalData, South Korea has encouraged its local companies to develop the technologies it needs to counter the threats they face. An aim of the KDDX project is for South Korea’s strong shipbuilding industry to work in conjunction with local defense companies to bid for this project and create an ‘Original Korean Destroyer’. This sort of development would be the exact message that South Korea would want to highlight. As a bonus for LIG Nex1, being selected will help the company to offer similar capabilities and technology in the region.

“According to GlobalData’s report, The Global Naval Vessels and Surface Combatants Market 2020-2030, Korean naval vessel market is expected to grow at 0.77% CAGR from 2020-2030 in line with a regional growth of 2.67% in Asia-Pacific with the destroyers program in the region accounting for 2.12% growth. “South Korea already has a robust shipbuilding industry and an ambitious and ever growing defense industry with significant exports. These announcements are to drum up support for the companies as they lay out their plans and bids for this project. But there’s nothing that should prevent them from developing solutions for a region that is facing complex relations.”