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HHI's Special & Naval Shipbuilding Division, as a licensed National Defense Industrial Shipbuilder and engineering consultant for the Korea's navy, has the technology to design and build modern and reliable surface and underwater combatants and, auxiliary support vessels of various proven and advanced hull forms.

Cutting edge shipbuilding technology has positioned HHI to lead the naval shipbuilding industry in the design and construction of a variety of modern sophisticated naval ships. In 1975, the Korean Ministry of Defense nominated HHI to design and build the first indigenous Korean frigate; the Ulsan-class frigate. Since constructing and delivering the first indigenous Korean frigate in 1980, HHI has grown as a developer and builder of naval ships.

HHI has an independent organization to perform special projects, Special & Naval Shipbuilding Division (SNSD), which is located in a separate restricted area within the shipyard for security purposes. SNSD has specialized, skilled manpower and streamlined facilities. All the work necessary for the design and construction of naval & special ships is conducted at SNSD.

With its accumulated warship technology, HHI operates as one of the most reputable naval shipbuilders in the world. As a key supplier to the Republic of Korean Navy (ROKN) and the Korean Coast Guard (KCG), HHI is currently executing major ship construction projects for ROKN such as Multi-purpose Frigates (FFX Batch-II / III), Fleet support vessel (AOE-II), the 1,800 ton Air Independent Propulsion (AIP) submarines (KSS-II / KSS-III).