(C) HD Hyundai

LIMA, Peru — HD Hyundai Heavy Industries (HD HHI) is accelerating its first overseas submarine export through a strategic partnership with the Peruvian government. The South Korean shipbuilder announced on Dec. 21 that it signed a contract for the joint development of a next-generation submarine with the Peruvian Navy and the state-owned shipyard SIMA Peru in Lima on Dec. 19.

The agreement serves as a formal follow-up to the Letter of Intent (LOI) signed during the 2025 Asia-Pacific Economic Cooperation (APEC) summit held in Gyeongju, South Korea. This project is a cornerstone of Peru’s long-term naval modernization program, which aims to enhance maritime sovereignty while bolstering the nation’s domestic shipbuilding capabilities.

Under the terms of the contract, both parties will collaborate to design a specialized submarine tailored to Peru's unique operational requirements. Unlike the relatively shallow waters of the Korean Peninsula, Peru’s naval environment involves vast Pacific coastlines and complex undersea topography with depths exceeding 3,000 meters. HD HHI plans to derive a customized design starting in January 2026, incorporating advanced equipment packages, modern weaponry, and sophisticated communication systems.

The partnership is viewed as a significant milestone in the global expansion of "K-Submarine" technology. Industry experts note that this deal distinguishes itself from traditional arms sales by focusing on a co-development model that integrates the customer’s specific demands into the core design.

Peruvian President José Geri, who attended the ceremony, emphasized the strategic importance of the deal. "This contract with HD HHI is not just about strengthening our shipbuilding industry; it is a symbol of a practical and strategic partnership between Peru and South Korea," Geri stated. "Peru will pursue this project with strong determination."

Joo Won-ho, President of HD HHI’s Naval & Special Ship Business Unit, expressed confidence in the venture. "This contract marks a turning point for Korean submarine exports," Joo said. "We will leverage our technological expertise and accumulated know-how to develop an optimal vessel that meets the Peruvian Navy's operational needs."

This collaboration builds on a foundation of trust established in April 2024, when HD HHI secured a contract to build four surface vessels for Peru. The success of this submarine project is expected to pave the way for further defense exports across Latin America.