Tender System for Submarine Project

The Ministry of National Defense on December 22 announced that it would bring in a multiple open tender system for the 1,500-ton SSU mid-size submarine project.
Thus far, Daewoo Heavy Industries has dominated the two billion dollar submarine project, but Hyundai Heavy Industries will stand a better chance to participate in future projects.
The Ministry, initially, tried to establish a monopoly contract system to avoid overlapping investment, but Hyundai fiercely resisted the plan and eventually won the open tender system.
A source from the Ministry said, 'If the SSU project is carried out without bidding, it could cause a scandal. We also wanted to improve the nation's technology development.'
For future submarine upgrade projects, the Ministry will receive proposals from Sweden, France, Germany and Russia and decide on one to participate with either Daewoo or Hyundai to jointly build the submarine.
The Korean Navy had continually pressed the Ministry since 1989 to build a new type of submarine that would allow the Navy to better monitor North Korean activity in the sea.