South Korea’s LIG Nex1 Co. has secured major components in the next-generation medium-range surface-to-air missile (M-SAM) system, known as Cheongung III, fending off competition from affiliates of Hanwha Group.

According to defense industry sources on Monday, the Defense Acquisition Program Administration (DAPA) recently notified bidders – LIG Nex1, Hanwha Hanwha Systems Co., and Hanwha Aerospace Co. – of the results of their proposal evaluations for the Cheongung III project.

Based on evaluations conducted by the Agency for Defense Development (ADD), LIG Nex1 received higher scores in the areas of system integration, engagement control station (ECS), and interceptor missiles.

Hanwha Aerospace received higher marks in the launcher segment, while Hanwha Systems led in the multi-function radar (MFR) category.

The most notable outcome is Hanwha Systems’ failure to secure the ECS component.

Although Hanwha Systems submitted a proposal for this segment, it received lower scores than LIG Nex1.

However, Hanwha Systems is expected to be selected for the MFR component, where it received a higher evaluation score.

Hanwha also attempted to win the system integration portion of the project but failed to achieve a competitive score.

Industry officials said the result maintains the current balance of responsibilities between LIG Nex1 and Hanwha affiliates, as seen in the earlier M-SAM II project.

“Had Hanwha Systems won even just the ECS contract, it could have significantly reshaped the division of labor in Korea’s air defense missile industry,” said an industry insider. “Hanwha aimed to take the lead in the missile defense sector at the group level but those efforts ultimately fell short.”

The Cheongung III project aims to develop a missile defense system capable of intercepting targets at twice the altitude of its predecessor, enhancing Korea’s ability to counter missile threats.

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