Peru partnership may serve as a template for South Korean naval exports into South America
Peru selected HHI as the strategic partner of SIMA to replace the Peruvian Navy's ageing Lupo-class frigates. (Photo: US Navy)
With a growing pipeline of naval modernisation programmes in South America, South Korean companies could be set to expand their presence in the region as recent contract wins highlight growing collaboration.
The relationship that Hyundai Heavy Industries (HHI) has developed with Peru and its domestic shipbuilding industry could open opportunities for both the company itself and another South Korean company, Hanwha Ocean, to expand their markets deeper into South America.
Shephard’s Defence Insight estimates a total market value of US$18.12 billion in South American naval programmes yet to be selected.
In 2024, HHI secured a $463 million contract from Peru. This contract covered the construction and delivery of one frigate, one offshore patrol vessel (OPV) and two landing craft utility (LCU) logistics vessels. HHI is building the
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