South Korea and Peru are collaborating on the development of a new generation of submarines.
HD HHI Group, in collaboration with Peru, is developing a specialized line of deep-sea submarines to replace its aging fleet and expand its military influence in South America.
South Korean shipbuilder HD Hyundai Heavy Industries (HD HHI) has officially signed a contract to jointly develop a new generation submarine with the Peruvian Navy and Servicios Industriales de la Marina (SIMA), the largest state-owned shipbuilding company in the South American country. The signing, held in Lima and witnessed by Peruvian President Jose Jeri, marks a significant milestone in defense cooperation between the two nations.
Specifically designed for deep sea areas over 3,000m.
The project aims to research and develop a "new generation Peruvian-style submarine" to replace aging vessels. Unlike the conditions on the Korean Peninsula, the Peruvian Navy's operational environment is primarily focused on seas deeper than 3,000 meters. Therefore, HD HHI will combine its core technology with Peru's specific operational requirements to create a unique design.
The new submarine is expected to integrate the most advanced weapons systems, equipment, and communication networks. This signing is a concrete step in realizing the Letter of Intent exchanged between the two sides on the sidelines of the APEC Summit in Gyeongju, South Korea, in November 2025.
Localization and technology transfer strategy
One of the factors that helped HD HHI surpass its European competitors to become a strategic partner is its product adaptability and technology transfer capabilities. According to military experts from Breaking Defense, Korean companies are willing to set up production lines right on the customer's territory, helping partners strengthen their domestic shipbuilding industry.
HD HHI Chairman Joo Won-ho affirmed that this project not only meets Peru's military needs but also serves as a springboard for the corporation to enter the promising Central and South American markets. President Jose Jeri also emphasized that the contract symbolizes the strengthening of shipbuilding capabilities and the practical strategic relationship between Seoul and Lima.
The new position of South Korea's defense industry.
The success of this deal was largely supported by the South Korean government, including the Ministry of Defense and the Defense Acquisition Program Administration (DAPA). Currently, South Korea ranks 10th globally in defense exports for the 2020-2024 period, according to data from SIPRI.
The South Korean government, under President Lee Jae-myung, aims to become one of the world's top four arms exporters. The export of submarines, one of the most complex military technologies, demonstrates the East Asian nation's superior competitiveness in both quality and cost on the international market.
