South Korean shipbuilder Hyundai Heavy Industries (HHI) won the construction contract for the second next-generation Aegis destroyer (also known as KDX III batch II).

South Korean shipbuilder Hyundai Heavy Industries (HHI) on 5 October 2021 held a keel laying ceremony for the lead ship of the KDX-III Batch-II AEGIS destroyer project for the Republic of Korea (ROK) Navy.

South Korean shipyard Hyundai Heavy Industries in mid-February started construction on the first KDX-III Batch-II AEGIS destroyer for the Republic of Korea (ROK) Navy.

The United States' State Department approved a possible Foreign Military Sale (FMS) to the Republic of Korea (ROK) of two Phalanx Close-In Weapons Systems (CIWS). These will be fitted aboard the ROK Navy's first KDX III Batch II Destroyer.

Despite the COVID-19 crisis, South Korea's defense budget remains mostly unaffected. Budget reductions in the "2020-2024 mid-term defense acquisition plan" will be limited to programs deemed as "non essential" and to a limited number of foreign procurement programs.

Hyundai Heavy Industries (HHI) announced on October 10 it has signed a US$565 million contract with the South Korean Defense Acquisition Program Administration (DAPA) for the first of three Gwanggaeto-III Batch II (KDX-III Batch II) destroyers for the Republic of Korea Navy (ROK Navy).

South Korea approved plans to construct the second batch of three destroyers, called KDX III Batch II, by 2028 with a budget of around 3.9 trillion won (US$3.3 billion), according to the Defense Acquisition Program Administration (DAPA).