South Korea has solidified its strategic partnership with Peru through a series of military contracts that represent a significant expansion of Seoul’s defense industry into South America. This development marks a deepening of relationships that have been cultivated over the past decade, with Peru emerging as Seoul’s key ally and operational hub in the region.
In recent weeks, two major deals were concluded between South Korean defense firms and Peruvian military entities. The first involved the signing of a contract between the Peruvian state-run shipyard Servicios Industriales de la Marina (SIMA) and Korea’s Heavy Hyundai Industries (HHI) for the construction of various naval vessels, including a frigate, two landing craft units, and an offshore patrol vessel. The contract is valued at approximately $460 million and is set to be delivered by 2029.
HHI described the agreement as its “largest defense industry export ever to Central and South America,” emphasizing the magnitude and potential influence of the deal within the regional context. Joo Won-ho, the head of HD Hyundai Heavy Industries’ naval and special ship division, stated, “We will mobilize our advanced technological capabilities and extensive experience to modernize and enhance the combat capabilities of the Peruvian Navy.”
The second contract announcement came from Hyundai Rotem, which will supply 30 8×8 White Tiger armored vehicles to the Peruvian Army for roughly $60 million. Both deals are viewed as significant boosts to Peru’s naval and land forces, aligning with Lima’s broad ambitions to modernize its military capacities.
Analysts suggest that these deals may be the beginning of an enduring strategic and military relationship between South Korea and Peru. Andre Carvalho, a military sciences PhD researcher, noted, “South Korea now is in an advantageous position to support and influence the future of Peru’s shipbuilding, paving the way for SIMA to become Seoul’s hub for Central and South America.” Hoshik Nam, a political science professor, concurred by identifying HHI as a “strategic partner” for the Peruvian Navy and hinting at the possibility of HHI playing a bigger role in Peru’s future production plans.
The Peruvian Navy is in the process of replacing its fleet of Italian-made Lupo-class frigates, with potential additional business for HHI should the initial frigate be delivered smoothly. Peru’s modernization program could ultimately involve the construction of up to 23 ships of various types, amounting to an effort potentially worth over $3 billion.
Relevant articles:
– back deals in Peru, South Korea defense industry expands South American foothold, Breaking Defense
– South Korea’s HHI inks deal to build four ships for Peru’s Navy, Defense News
– UK picks 90 suppliers to support Hypersonic strike program, Breaking Defense
– The United States’ Missed Opportunity in Latin America, Foreign Affairs