Hyundai Rotem has made a deal to sell T 54 K2 main battle tanks like the one shown and 141 K808 armored personnel carriers to Peru with an expected value that exceeds $1.4 billion, File Photo by Yonhap
Dec. 18 (UPI) — Peru signed a strategic agreement with South Korean defense firm Hyundai Rotem for the future acquisition of tanks and armored vehicles — a deal that, if finalized, could become South Korea’s largest land-defense export to a Latin American country.
The agreement involves the sale of 54 K2 main battle tanks and 141 K808 armored personnel carriers, with an expected value that exceeds $1.4 billion, RPP Noticias reported. It would mark the first sale of this type of South Korean military equipment in the region.
Peru’s Ministry of Defense said in a statement that the agreement also includes technological cooperation, financing options and the promotion of industrial projects linked to the defense sector, in line with the country’s plans to modernize and strengthen its military capabilities.
Peruvian lawmaker and former admiral Jorge Montoya told UPI that military cooperation between the two countries began about a decade ago through contacts between Peruvian shipyards and Hyundai.
“For the past 40 years, Peru has acquired weapons from Germany. However, after a series of economic and technological assessments, the decision was made to change suppliers to Hyundai,” Montoya said. “A cooperation agreement has also been signed with them for the development of submarine units.”
Montoya said the goal of the agreement is to ensure a defense capability suited to the country’s realities.
“We are not seeking to compete with any country in the region, because other countries spend twice as much on defense as we do,” he said. “Peru allocates the smallest share of GDP to defense, just 0.8%. All countries are ahead of us, including Bolivia.”
He added that Peru’s extensive borders require modern capabilities for the armed forces.
The framework agreement sets the stage for deliveries beginning in 2026, with the possibility of local assembly starting in 2029. The plan includes joint industrial projects involving Peru’s Army Weapons and Ammunition Factory and Hyundai Rotem.
Maj. Gen. Jorge Arevalo, commander of the Army’s Logistics Command and a board member of the state-owned arms manufacturer, recently confirmed that South Korean partners are planning an initial $270 million investment to build an industrial complex in Peru where K2 tanks and armored vehicles would be assembled, Peru 21 reported.
Peru’s Prime Minister Ernesto Alvarez said the Army is recovering lost capacity to transport troops in armored vehicles, a process that also involves acquiring front-line tanks to replace Soviet-era T-55 models that he said no longer have deterrent capability.
Alvarez also confirmed that Peru this week received a second batch of three UH-60 Black Hawk helicopters donated by the United States under an agreement signed in October last year for a total of nine aircraft.