HD Hyundai Heavy Industries advances joint development of next-generation submarine with Peru
SIMA shipyard and HD HHI sign LOI, aiming for formal contract and joint design work in Ulsan within the year
HD Hyundai Heavy Industries (HD HHI) is moving forward with a joint development program to support the Peruvian Navy’s acquisition of next-generation submarine capability. Industry observers note that the project marks one of the first full-scale submarine co-development initiatives in South America, signaling deeper naval modernization efforts and expanded defense cooperation between Korea and the region.
HD HHI announced on the 3rd that it signed a Letter of Intent (LOI) with Peru’s state-owned SIMA shipyard at the company’s headquarters in Ulsan on the 1st. The LOI follows a memorandum of understanding signed during the APEC Summit in Peru last year, as well as a memorandum of agreement concluded during the international defense technology exhibition SITDEF earlier this April. The new agreement elevates the partnership from strategic intent to practical contract negotiations.
The signing ceremony was attended by HD HHI President Joo Won-ho, senior officials from South Korea’s Defense Acquisition Program Administration, Peru’s Minister of Foreign Trade and Tourism Teresa Mera, Admiral Bravo de Rueda of the Peruvian Navy, Peruvian Ambassador to Korea Paul Duclos, and SIMA President Luis Silva — highlighting the strategic nature of the cooperation.
Under the LOI, the two sides will finalize key aspects of the project, including the submarine’s basic and detailed design approach, production arrangements, technology transfer scope, and technical workforce collaboration. HD HHI plans to conduct joint development activities with SIMA and Peruvian Navy engineers directly at its Ulsan shipyard, producing a submarine design optimized for Peru’s maritime environment and operational needs. Both sides are targeting a formal joint development contract within the year.
HD HHI and SIMA are already jointly constructing four naval vessels — including multi-purpose frigates, offshore patrol vessels, and an amphibious support ship — and the submarine agreement expands the partnership into a higher level of defense capability development.
SIMA President Luis Silva emphasized the historic nature of the initiative, stating, “This project represents the first full-scale submarine co-development led by a South American navy. It will not only strengthen Peru’s defense capacity but also support greater defense and shipbuilding autonomy across the region.”
Joo Won-ho, President of HD Hyundai Heavy Industries’ Naval & Special Ship Business Unit, noted, “Our ongoing surface ship projects have already laid a strong foundation for bilateral industrial cooperation. The submarine co-development marks the next phase in strengthening the Peruvian Navy’s maritime defense posture.”
Industry experts expect the agreement to accelerate defense industrial cooperation between Korea and South America, broaden military technology supply networks, and support naval modernization efforts as regional maritime security challenges evolve.