INTERVIEW: Answering the call for modern fleets – HHI on naval programs, technologies and future platforms

Rising geopolitical tensions and the rapid evolution of maritime threats are driving navies worldwide to accelerate fleet modernization and rethink how sea power is built. From surface combatants and submarines to unmanned and autonomous platforms, maritime forces are facing growing pressure to enhance readiness, resilience, and technological edge while securing long-term industrial capacity. South Korean shipbuilding giant HD Hyundai Heavy Industries (HHI) is working in line with these demands through a growing portfolio of naval shipbuilding programs, international partnerships, and emerging unmanned system projects.

Naval Today spoke with Tae-bok Choi, Vice President of Strategic Communications at HD Hyundai Heavy Industries, who shared insights into the company’s long-term naval vision, current projects, and how emerging technologies such as unmanned systems and digital shipyards are reshaping future naval warfare.

• In light of rising geopolitical tensions, shifting alliances, and growing emphasis on naval modernization worldwide, what is HD Hyundai Heavy Industries’ long-term vision for its naval business? Which types of vessels (surface warships, auxiliary ships, submarines, unmanned vessels) do you anticipate will see the highest demand?

Tae-bok Choi: HD Hyundai Heavy Industries (hereinafter “HHI”) is paying close attention to the expansion of global demand for naval vessel construction and MRO businesses, including in the United States. This is because many countries are pursuing naval modernization programs to replace aging fleets. In addition, most countries implementing naval modernization programs wish to build their own capabilities for naval vessel construction and MRO within their borders.

Accordingly, HHI is considering naval vessel construction, MRO, and industrial cooperation for the localization of shipbuilding as its key business areas. The company is already pursuing MRO projects in the Philippines and conducting local shipbuilding in countries such as Peru. In current naval export projects, HHI is also considering business models that support the localization of shipbuilding in the purchasing countries. Through this approach, the company plans to establish regional hubs across different continents worldwide.

At present, demand is emerging simultaneously for the modernization of existing manned vessels and for the development of unmanned vessels. As a result, orders are being placed for frigates, offshore patrol vessels, and small- and medium-sized submarines, along with growing demand for next-generation naval vessels equipped with unmanned capabilities. HHI has already experienced this trend through recent shipbuilding projects for the Philippines and Peru, and based on this track record, the company is developing a wide range of export-oriented naval vessels.

• With the upcoming consolidation of HD Hyundai Heavy Industries and HD Hyundai Mipo scheduled for formal launch this month, how does this merger reshape your global naval-shipbuilding strategy and ambitions?

Tae-bok Choi: Strengthening competitiveness in the defense sector is one of the main reasons HHI pursued the merger. As of December 1, the integrated HD Hyundai Heavy Industries was officially launched, and the former Naval Ships Business Division of HHI and HD Hyundai Mipo were merged to establish the Naval and Medium-Sized Vessels Business Division.

Through this merger, production capacity—previously limited to the construction of three surface combatants and one submarine per year—can be expanded by approximately threefold. Specifically, in addition to the existing two dry docks and the submarine production facility, up to two of the four dry docks currently operated by HD Hyundai Mipo, along with their supporting facilities, are planned to be utilized for naval and special-purpose vessel construction.

As a result of the merger, the number of design engineers in the naval business sector, which previously stood at approximately 350, will increase as around 600 engineers from HD Hyundai Mipo gradually participate in naval ship design, bringing the total to approximately 950 engineers. Based on this foundation, the Naval and Medium-Sized Vessels Business Division will serve as a kind of “mother plant,” playing a central role in leading global naval shipbuilding projects in the future.

This merger has also created the conditions necessary to stably carry out naval shipbuilding projects with regional shipyards across different continents that HD Hyundai is pursuing, including MASGA, a Korea–U.S. shipbuilding cooperation project.

• As global naval demand increases and countries reassess maritime security and supply-chain resilience, can you outline how HD Hyundai Heavy Industries approaches tailoring platform designs to meet diverse regional requirements?

Tae-bok Choi: HHI has a proven track record of designing and building nearly all types of naval vessels, with the exception of aircraft carriers and nuclear-powered submarines. In addition, given the security situation on the Korean Peninsula, naval vessels delivered to the Republic of Korea Navy are required to be prepared for real combat deployment. This means that HHI possesses extensive experience in developing and constructing highly practical and combat-proven naval vessels.

HHI also has the largest number of research personnel among shipyards worldwide. In 2024, the company newly launched the Naval Ship Research Institute. Based on these research capabilities, HHI has successfully developed and exported standardized export-type naval vessels, known as “mother ships,” and is continuing to develop various types of naval vessels capable of meeting a wider range of operational requirements. In the case of export frigates, following the delivery of 2,600-ton- and 3,200-ton-class frigates to the Philippines, HHI is currently carrying out the 3,600-ton-class frigate project for Peru and is preparing to participate in the Saudi frigate program. In addition, in the submarine sector, the company is pursuing a joint development project with Peru for a 1,500-ton-class submarine.

In this way, leveraging its domestic R&D achievements and the capabilities of its in-house research institutes, HHI is proactively developing export-oriented naval vessels that can meet a wide variety of requirements. Through this approach, the company is offering solutions that enable purchasing countries to acquire optimized naval vessels more quickly and at more competitive costs. This is one of HHI’s key competitive strengths.

• Which export programs or foreign-navy partnerships do you consider the most significant for the company’s growth?

Tae-bok Choi: HHI’s naval vessel export strategy is built on partnerships. The needs of purchasing countries vary widely, and in recent years there has been a growing demand to revitalize underdeveloped domestic shipbuilding industries. Accordingly, beyond optimally meeting requirements for performance, cost, and delivery schedules, HHI offers proposals that can also address a broad range of demands related to shipbuilding industry cooperation.

This is possible due to HHI’s unique competitiveness, backed by the world’s leading technological capabilities and a global supply chain. Partner countries highly value the company’s overall reputation and capabilities, which is why they are favorable toward establishing partnerships with us.

For example, HHI has formed a 15-year strategic partnership with Peru’s SIMA shipyard, jointly constructing four naval vessels, including frigates. This type of long-term collaboration exemplifies the partnership model that HHI. This approach is essential because the shipbuilding industry is characterized by an ecosystem that requires significant time to establish and the development of an extensive supply chain.

• In October this year, HD Hyundai Heavy Industries signed a cooperation agreement with US company Huntington Ingalls Industries (HII) to jointly pursue naval and auxiliary shipbuilding programs, including potential new builds for allied navies. How will this partnership impact your design, delivery, and export strategy for surface warships and auxiliary vessels? Are there plans to expand production capacity or adapt designs to meet the requirements of U.S. or other allied navies under this cooperation?

Tae-bok Choi: HHI is actively participating in MASGA, a project aimed at revitalizing the shipbuilding industry in the United States. Cooperation with Huntington Ingalls Industries (HII) is also expected to become a key collaboration model for realizing MASGA.

As an initial step, HHI and HII have agreed to jointly participate in the U.S. next-generation auxiliary support ship program. In this partnership, HHI will be responsible for providing design and construction capabilities.

HHI has designed and built all auxiliary support ships currently operated by the Republic of Korea Navy. In addition, the company has export experience, having delivered two auxiliary support ships to New Zealand, including the 23,000-ton-class auxiliary support ship AOTEAROA.

Starting with auxiliary support ships, HHI and HII plan to further expand their cooperation going forward. In essence, the shared goal of both companies is to combine the respective strengths of the world’s leading commercial shipbuilder and the world’s leading naval shipbuilder to develop optimized solutions for naval vessel construction.

• HD Hyundai’s submarine expertise ranges from small to large designs, and the successful delivery of KSS-III class submarine Shin Chae-ho, the first 3,000 ton submarine that the company designed and built independently, to the ROK Navy in 2024 marked a major achievement. How does this program reflect the maturity of HD HHI’s submarine construction capabilities?

Tae-bok Choi: HHI successfully became the first company outside Germany to construct a Type 214 submarine equipped with an Air-Independent Propulsion (AIP) system. The company has also jointly carried out the basic design of a 3,000-ton-class submarine and built one vessel. In addition, HHI has successfully conducted research and development of small submarines, and has secured a contract for the performance upgrade program of three Type 214 submarines currently operated by the Republic of Korea Navy, with the project scheduled to begin next year.

In this way, HHI possesses proven capabilities and track records across the full spectrum of submarine classes—from small to large—covering both design and construction. Based on these capabilities, the company is developing various submarine types, including 2,300-ton-, 1,500-ton-, and 800-ton-class submarines.

Leveraging this expertise, HHI plans to soon commence joint development of a 1,500-ton-class submarine with Peru’s SIMA shipyard. This initiative is expected to mark a new milestone for K-naval defense exports.

Beyond Peru, HHI is also engaged in contract negotiations with several other countries pursuing the acquisition of small- and mid-sized submarines. Going forward, HHI is poised to become a highly recognized global player in the submarine export market.

• With HHI’s growing ambition in submarine design and export, as seen in cooperation deals (for example, a recent agreement with SIMA Perú to codevelop submarines for the Peruvian Navy), how do you envision HD Hyundai Heavy’s role in the global submarine market over the next decade?

Tae-bok Choi: Submarines are expected to remain in steady global demand going forward, as they are a core strategic asset capable of safeguarding national maritime sovereignty with a relatively small number of vessels. Many countries currently operating submarines face the need to replace aging fleets with new platforms, while others are seeking to introduce submarines as a new capability.

Over the next decade, HHI expects to establish itself as a global submarine supplier, starting with Peru and expanding to markets worldwide. The company has already developed a diverse portfolio of submarines tailored to market demand and has demonstrated competitive advantages in cost-effectiveness and delivery schedules.

• How is HD Hyundai Heavy Industries preparing its submarine-construction technologies, including propulsion, sensor integration, and modular design for future demands?

Tae-bok Choi: HHI has established a collaborative framework with global companies, including LIG Nex1, a key systems integrator in the submarine sector. Through these partnerships, the company is able to offer a wide range of solutions tailored to the specific requirements of purchasing countries.

HHI has a proven track record of successfully applying lithium batteries (lithium-ion polymer) to submarines to secure one of the core performance factors of conventional submarines—extended submerged endurance. In parallel with continuing submarine programs with the Republic of Korea Navy, including the Type 214 performance upgrade project, the company is also pursuing submarine export programs. This dual-track engagement provides an optimized environment for the continuous application of AI-based next-generation technologies and the development of evolutionary submarine platforms.

Furthermore, the development of evolutionary naval platforms in line with technological advancement requires the ability to operate mission functions selectively and to upgrade individual systems with ease. A modular approach is the most effective means of achieving this. As the timely application of emerging technologies has become a critical factor, modular design and construction will be an effective method for accelerating this process. HHI has already implemented modular design and construction in its submarine programs.

• HHI recently entered a partnership with Anduril to develop unmanned surface vessel that will be a game changer in future naval warfare. Could you describe the vision behind this collaboration and what types of missions you foresee for these autonomous vessels?

Tae-bok Choi: HHI’s collaboration with Anduril to develop large unmanned surface vessels (USVs) is expected to carry significant implications for the unmanned naval vessel market in the United States and globally. HHI and Anduril each possess capabilities optimized for vessel autonomy and mission autonomy, respectively, and have already begun construction of a USV prototype.

HiNAS (Navigation Automation Solution), developed by Avikus, a subsidiary of HD Hyundai, is a commercialized system that has become the world’s first to complete verification of autonomous navigation on merchant vessels. In addition, HD Hyundai is building AI-based systems for machinery automation and damage detection and control, including HiCAMS (Camera-based AI Management for Safety) and HiCBM (Condition-Based Maintenance).

The collaboration between HHI and Anduril is expected to transform the conventional approach to naval vessel development. Traditionally, programs have proceeded based on military requirements, with companies implementing solutions to meet those specifications. However, for unmanned systems—where rapidly advancing technologies must be applied—it is anticipated that a fundamental shift will occur, in which technology-leading companies develop unmanned platforms first and then propose them to military customers.

HHI and Anduril are expected to play a leading role in this new model of unmanned systems development. Next year, the jointly developed USV prototype by HHI and Anduril will be unveiled.

• How do you expect the introduction of unmanned vessels to change naval force structure and procurement trends globally?

Tae-bok Choi: The United States will continue to acquire high-performance, highly capable manned naval vessels while also expanding its fleet of unmanned platforms designed to conduct cooperative operations that enhance the survivability of manned forces. Demand is also increasing for personnel-efficient vessels enabled by the application of AI technologies.

This signals the advent of an era in which technological capabilities drive fundamental changes in naval power. Accordingly, maritime defense companies must accelerate not only the advancement of manned platforms but also the development of unmanned systems. Manned-unmanned teaming concepts, in which unmanned assets such as UAVs, USVs, and UUVs are deployed and operated from manned vessels, are already under development.

Unmanned surface vessels developed by HHI; Credit HHI

In this context, the collaboration between Anduril, which specializes in AI technologies, and HHI, which has successfully developed autonomous navigation vessels, represents an ideal partnership model. This collaboration is expected to introduce a new shift in naval procurement trends.

• Given the growing global interest in unmanned and autonomous maritime platforms, how do you see submarine technology evolving (e.g., unmanned underwater vehicles)? Is HHI exploring or planning future developments in that direction?

Tae-bok Choi: While the development of unmanned surface vessels (USVs), unmanned underwater vehicles (UUVs), and unmanned aerial vehicles (UAVs) is progressing in parallel, USVs are being fielded most rapidly due to their higher level of technological maturity. UAVs are also evolving into maritime-optimized models, leveraging technologies originally developed for land-based UAVs. In contrast, UUV development inevitably requires more time due to the need to overcome challenging underwater environmental factors; nevertheless, UUVs are also expected to be operationally deployed in the near future.

Against this backdrop, HHI is focusing on ship development that incorporates UAV and UUV operational concepts, alongside the development of USVs. In April, HHI was awarded a concept design project for a USV by the Republic of Korea Navy, with delivery scheduled for December. The project applies manned-unmanned teaming (MUM-T) operational concepts and integrates technologies developed by Avikus, an HD Hyundai subsidiary, which have already been commercialized in the merchant shipping sector. These include AI-based capabilities for autonomous navigation, situational awareness, collision avoidance, and automated berthing, enabling a high level of operational automation.

HD Hyundai expects that the technologies accumulated across both commercial shipbuilding and naval vessel sectors will work in a mutually reinforcing manner, allowing the company to sustain a competitive advantage in future ship development. This is supported not only by a strong pool of research personnel, but also by extensive datasets, including hydrodynamic data and proven development experience utilizing machine-learning algorithms, which are deeply embedded within HHI.

• Beyond autonomous vessels, what other technological innovations are you prioritizing (e.g., digital-shipyard processes, modular design, AI-assisted design/construction, smart-ship systems)?

Tae-bok Choi: Going forward, AI-enabled naval vessels must be built in AI-enabled shipyards. These two elements must advance together, much like interlocking gears. HD Hyundai is already undertaking a fundamental transformation to become a digital shipyard, with a full-scale shift toward digital manufacturing environments underway across both its R&D organizations and production operations.

For example, HD Hyundai is enhancing process efficiency and quality management with greater precision through the application of robots, sensor networks, and AI-based welding and inspection systems, as well as through the integrated analysis of production data. The company has already begun applying humanoid robots capable of welding at worksites through a partnership with Persona AI, and is strengthening cooperation with global technology leaders such as Siemens and Palantir to digitalize the entire value chain from design to production. Building on these efforts, HD Hyundai aims to maintain its competitiveness as a leading developer of autonomous vessels and unmanned systems.

In addition, under its guiding principle of “establishing a decarbonized global energy value chain for the future,” HD Hyundai is accelerating the development of environmentally friendly engines. The company has become the world’s first to commercialize ammonia-powered vessels, and is also advancing the development of next-generation fuel vessels, including SMR-powered ships.

• Which markets or regions does HHI believe will drive the next wave of naval contracts (surface ships and submarines) in the future?

Tae-bok Choi: Key markets where demand for naval vessels is emerging are distributed worldwide, led by Southeast Asia, followed by Latin America, the Middle East, and Europe. HHI is already working in cooperation with these markets. Alongside regional market expansion, creating future-oriented demand is also an important element of the company’s business strategy. Furthermore, building a global network is expected to generate synergies by fostering a sustainable ecosystem across the global shipbuilding and naval vessel industries.

HHI became the first single shipyard in the world to achieve the milestone of delivering 5,000 vessels, reaching this record in November. It is particularly meaningful that the 5,000th vessel delivered was the Philippine Navy patrol vessel BRP Diego Silang. Over more than 50 years, HHI has built 5,000 ships, including 106 naval and special-purpose vessels, and has exported 18 naval vessels, the highest number among Korean shipbuilders.

Based on this technological foundation and proven track record, HHI will continue to serve as a global top-tier player, providing stability and leadership in the global shipbuilding and naval vessel markets. The robust capabilities accumulated over decades, together with the company’s future growth potential, offer major customers and governments around the world a strong sense of trust and reliability, positioning HHI as a long-term partner of choice for the future.

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