Korean shipbuilder challenges European bidders in Danish frigate tender

A South Korean bid is reshaping the competitive landscape in Denmark’s upcoming frigate procurement, where speed and cost are emerging as decisive factors.

This is reported by DR, based on an interview with HHI senior vice president Jae Rak Kim.

The contract, expected to be among the largest defence orders in Danish history, has so far involved primarily European shipbuilders. HHI’s entry introduces a non-European alternative that emphasises speed and cost as key differentiators.

The company, headquartered in Ulsan and considered the world’s largest shipbuilder, is proposing a delivery timeline that would see four frigates completed within just over four years if a contract is signed in 2026. This contrasts with longer timelines typically associated with European yards.

- We are 20-30 percent cheaper than our European competitors. So Denmark can get four ships for the price of three, says Jae Rak Kim, senior vice president at HHI, to DR.

Speed versus policy

HHI also highlights prior collaboration with Danish shipping giant A.P. Møller - Mærsk, for which it has delivered multiple vessels.

The offer aligns with a broader political focus in Denmark on rapid military build-up, where delivery speed has been highlighted as a critical factor. At the same time, the procurement is shaped by political ambitions to anchor production in Denmark and cooperate with Nato allies.

This creates a structural tension in the tender. While HHI signals flexibility - including the possibility of building later vessels in Denmark and integrating European weapon systems - partial local production would increase both cost and delivery time.

According to DR, building ships in Denmark could raise prices by an estimated 30 to 50 percent, underlining the trade-off between industrial policy and procurement efficiency.