HD Hyundai Heavy Industries announced that it has been awarded the “Defense Cost Management System Certification” by the Defense Acquisition Program Administration (DAPA) of South Korea.
This marks the first time a company in the naval sector has received this certification since the program's inception in 2012.
The certification program, initiated by DAPA's Defense Industry Promotion Bureau, aims to ensure fair and transparent cost management for defense materials. Companies that obtain this certification are eligible for additional profit incentives on defense contracts.
To qualify, a defense contractor's Enterprise Resource Planning (ERP) system must be capable of automatically transmitting cost information to the Defense Integrated Cost System.
Additionally, the company must reliably submit cost data related to contracts exceeding a certain monetary threshold.
Since the program's launch, 12 companies in the land and air defense sectors have received certification. HD Hyundai Heavy Industries is the first in the naval sector to achieve this status.
In 2024, HD Hyundai Heavy Industries established a management system to enhance transparency and efficiency in cost management. The company has also provided consulting and training to its partners to help them develop defense cost management capabilities and systems.
HD Hyundai Heavy Industries is a South Korean shipbuilding company and a subsidiary of HD Hyundai Group. It is one of the world's largest shipbuilders, specializing in the construction of various types of vessels, including commercial ships, naval ships, and offshore structures.