"If the government backs us with close cooperation with the new Keiko Fujimori administration in Peru, which takes office in late July, I am confident we can absolutely win the order for the Peruvian Navy's project to acquire the latest 1,500-ton class submarines."
Shin Hyung-sik, executive of the naval vessel and mid-sized ship division at HD Hyundai Heavy Industries, made these remarks in an interview with the Seoul Economic Daily on the 19th, saying, "In December last year, we signed a joint submarine development contract with the Peruvian Navy to secure two 1,500-ton class new submarines, and we completed the basic design in the middle of this month."
Shin particularly emphasized, "Our common goal is to sign the detailed design and construction contract for the lead ship (No. 1 vessel) by the end of this year, and then begin full-scale construction from next year." He added, "Mutual cooperation in maritime defense will become a new opportunity for the two countries to develop into a future-oriented partnership."
The Peruvian Navy seeks to replace its aging German-made submarines with the latest Korean-made submarines. To this end, after signing a memorandum of understanding for joint submarine development with HD Hyundai Heavy Industries in 2024, it signed a next-generation submarine joint development contract in 2025, building a strategic partnership.
Although HD Hyundai failed to win the Canadian submarine project, he said, "We can continue our challenge to export submarines," adding, "We plan to finalize the key specifications of next-generation submarine power with the Peruvian Navy, build the submarines locally, and based on that track record, expand our business capabilities across all of South America."
HD Hyundai Heavy Industries is pursuing the business based on a long-term partnership with Peru, rather than short-term submarine construction. In April 2024, it signed a 15-year long-term partnership, including a construction contract for four surface vessels of three types, such as frigates, with the Peruvian Navy and the state-owned shipyard (SIMA).
As the first fruit, a launching ceremony for a 1,500-ton class landing ship is scheduled to be held soon. HD Hyundai Heavy Industries provides design and construction technology and equipment supply, while the Peruvian shipyard provides on-site production personnel and production infrastructure to build the hull. It is expected to become the first vessel as the first result of this "joint cooperation."
Shin emphasized that joint cooperation through local construction, as in Peru, is a new opportunity for the maritime sector of K-defense. Building joint infrastructure, such as training personnel and securing supply chains for the construction of surface vessels (vessels and submarines) rather than simply exporting vessels, means gaining an overseas production base in South America.
He said, "If a submarine order follows the construction of surface vessels, sustainable maritime sector projects will continue. Rather than the fragmentary vessel exports and partnership transfers of the past, this can be sublimated into a new form of business opportunity creation and the unrivaled competitiveness of K-vessel exports."
Regarding why close cooperation with Peru is important in the maritime sector, Shin explained, "Peru is a leading country in the shipbuilding and maritime industry representing Central and South America." He added, "Above all, Peru is a country with sufficient potential, and if we share surface vessel technology and experience, we can become partners that grow together."
However, Shin judged that building close cooperation between the Korean and Peruvian governments is necessary. As experienced in the Canadian Patrol Submarine Project (CPSP), a company's technological prowess and capabilities are fundamental, but mutual trust between nations and industrial cooperation are very important factors.
He said, "If we show a willingness to engage in various exchanges and cooperation with Peru's new government, the Peruvian Navy's latest submarine order will surely be won." He added, "If we immediately dispatch a high-level special envoy to the new president's inauguration ceremony, it could become a new opportunity for the two countries to develop into a future-oriented partnership."
Looking at the specifications of the submarine that HD Hyundai Heavy Industries is jointly developing with the Peruvian Navy, its power is based on lithium-ion batteries, with a tonnage of 1,500 tons (submerged displacement of 1,850 tons), a length of 65.3 meters, and a maximum speed of 20 knots. Its armament includes eight horizontal launch tubes, a crew of 40, and a maximum mission duration of 50 days.
Shin said, "HD Hyundai Heavy Industries marks its 50th anniversary in the defense sector this year, starting with the construction of Korea's first combat ship, the Ulsan, in 1976." He added, "If we win the Peru submarine project by perfectly equipping ourselves with the three elements of best performance, optimal cost, and timely delivery, we will achieve our first overseas export in 15 years."
K-defense exports in the maritime sector began with HD Hyundai Heavy Industries' export of a New Zealand logistics support ship in 1987, and have since set a record of exporting more than 40 surface vessels (vessels and submarines). Including support vessels, the total reaches about 60 ships, continuing steady growth.
He expressed confidence, saying, "A few European shipyards cannot handle all of the world's vessel construction demand and maintenance, repair and overhaul (MRO) business. Clearly, niche markets will emerge, and winning the submarine project in Peru, in Central and South America, will be a catalyst for creating a sustainable future for maritime K-defense."
