South Korea’s “One Team” defense partnership between HD Hyundai Heavy Industries and Hanwha Ocean reflects a strategic move to boost naval exports and aligns with South Korea’s broader goal of becoming a top-five global arms exporter, but unresolved internal rivalry and weak government coordination threaten its success.

Success in securing high-profile contracts, particularly Canada’s $49 billion submarine deal, could elevate South Korea’s status as a global defense exporter. However, internal tensions, legal conflicts and inconsistent diplomatic support pose significant risks to this ambitious strategy.