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
Our news & analysis is now part of Defence Insight®
A Basic-level or higher Defence Insight subscription is now required to view this content.
More from Country-focused updates
-
![Poland land systems focus: €31 billion spending drive boosts domestic production ambitions]()
Poland land systems focus: €31 billion spending drive boosts domestic production ambitions
Poland’s potential €53 billion land procurement pipeline could give it one of Europe’s largest armoured vehicle fleets, with local production, technology transfer and future exports central to the strategy.
-
![European funding and NATO interoperability could shape Polish helicopter plans]()
European funding and NATO interoperability could shape Polish helicopter plans
Poland is seeking to update its transport helicopters as part of a wider military aviation modernisation programme, with EU funding requirements and NATO interoperability key considerations.
-
![Poland air focus: $8.27 billion UAV market highlights value of long-term supplier relationships]()
Poland air focus: $8.27 billion UAV market highlights value of long-term supplier relationships
Poland’s growing investment in UAVs highlights how recurring procurement contracts and continuous technological development can provide suppliers with sustained opportunities beyond initial acquisitions.
-
![Canada’s submarine availability under pressure as Chicoutimi is unlikely to return to front-line duties]()
Canada’s submarine availability under pressure as Chicoutimi is unlikely to return to front-line duties
HMCS Victoria and HMCS Windsor could return from their current deep maintenance, but unconfirmed operational timelines leave questions over patrol capacity before the first CPSP arrives.
-
![Canada accelerates uncrewed aerial system procurement for NATO and Arctic forces]()
Canada accelerates uncrewed aerial system procurement for NATO and Arctic forces
Canada plans to acquire at least 120 uncrewed aerial systems through two competitions with combined funding ceilings of C$32 million.
