HD Hyundai's new headquarters in Seongnam, Gyeonggi Province/ Courtesy of HD Hyundai

HD Hyundai Heavy Industries said Monday it has decided to withdraw a defamation lawsuit against employees of shipbuilding rival HD Hanwha Ocean, citing what it called the need for cooperation among domestic shipyards.

"We have made the decision (to drop the lawsuit) in the spirit of broad cooperation to contribute to the development of the domestic shipbuilding industry," HD Hyundai Heavy said in a statement.

HD Hyundai filed the suit in May against Hanwha Ocean employees after they claimed in a press conference that top officials of HD Hyundai may have been involved in a military secrets leak related to the Korea Destroyer Next Generation project.

The move by HD Hyundai was apparently in reciprocation to Hanwha Ocean's decision last week to withdraw its own complaint against HD Hyundai.

Industry insiders have noted that the thawing of relations between the shipbuilding rivals follows a recent meeting between Hanwha Group Vice Chairman Kim Dong-kwan and Chung Ki-sun, vice chairman of HD Hyundai, amid calls within the shipbuilding community to unite in the face of global market uncertainties. (Yonhap)