South Korea’s largest shipbuilder submits bid for Denmark’s multi-billion naval frigate contract

South Korean industrial giant HD Hyundai Heavy Industries (HHI) has entered the race for Denmark’s largest-ever defence procurement, offering to deliver four new frigates at a significantly lower cost and faster pace than its European competitors, DR reports.

The company claims it can supply the vessels for 20–30% less than European bids, effectively providing four ships for the price of three. Under its proposed timeline, the first frigate would be delivered in 3.5 years, with all four operational by 2031—assuming a contract is signed this year. European competitors, by comparison, may only deliver their first vessel by that same deadline if schedules hold.

“From the moment the contract is signed, we can deliver the first ship in three and a half years,” said Jae Rak Kim, HHI’s senior vice president and director of international defence sales. He noted the company’s track record of on-time or early deliveries over the past six years, with no delays in naval vessel construction.

With over 19,000 employees and annual revenue exceeding 94 billion Danish kroner (€12.6bn), HHI is the world’s largest shipbuilder by output. Its Ulsan yard—the biggest globally—spans nearly 800 hectares (1,100 football pitches) and has produced over 5,000 ships in 50 years, including more than 100 naval vessels for South Korea, New Zealand, the Philippines, and Peru.

The bid arrives as Denmark’s incoming government prepares to finalise the frigate deal, a cornerstone of the country’s military modernisation. The process, paused during the recent election, has drawn bids from four European nations and a Danish consortium alongside international partners. HHI’s entry introduces a non-European contender with direct government backing.

“The Korean government is very active in supporting our defence companies,” Kim said, citing recent arms exports to Poland where Seoul played a “very active and offensive role.” He confirmed similar high-level engagement would accompany any Danish deal.

Political hurdles remain

While HHI’s proposal aligns with Denmark’s stated priority of speed—echoed by acting Prime Minister Mette Frederiksen’s February call to “buy, buy, buy” to address defence gaps—it may conflict with political preferences for European suppliers. The April 2025 procurement agreement emphasises “a high degree of production in Denmark, including cooperation with NATO allies,” a clause that could favour European bidders.

Several Danish parties have also voiced a general preference for European defence purchases. Kim, however, remains optimistic: “In the end, it depends on interpretation and political will. We still believe the door is open.”

The company’s existing ties to Denmark—including recent construction of 19 vessels for A.P. Moller-Maersk—could bolster its case. “Maersk has very strict quality standards, which we’ve met,” Kim noted, framing the collaboration as proof of HHI’s compatibility with Danish requirements.

The frigate contract has triggered a broader geopolitical contest, with European governments actively lobbying Denmark. Germany and France have each dispatched frigates to Copenhagen carrying vice-ministers and tailored offers, while UK Prime Minister Keir Starmer confirmed “intensive” high-level engagement to support British bidder Babcock’s Arrowhead 140 design.