During President Lee Jae-myung's state visit to Mexico, the two governments signed 17 agreements on September 25, 2026 covering critical minerals, artificial intelligence, defense, and space, including a bilateral defense cooperation memorandum. Separately, Korea Aerospace Industries, POSCO International, and Mexico's aerospace industry federation FEMIA signed a memorandum on operations and maintenance technology for the FA-50, unmanned aerial vehicles, and satellites. Mexico has no FA-50 on order, and the agreement is framed as a first step toward an eventual sale of the light combat aircraft to the Mexican Air Force, which still operates aging F-5s.
Hyundai Rotem and the Peruvian Army signed a framework agreement in December 2025 for 54 K2 tanks and 141 K808 wheeled armored vehicles, but the implementing contracts worth more than KRW 2 trillion remain unsigned. Three trial K2s arrived at Callao on July 6, 2026 and were shown at the FAME plant in Lurigancho around September 11, but Peru's Ministry of Defence suspended signing because it lacked funds for a roughly $1.5 billion advance payment, and the July change of government has slowed the process. Seoul is pressing Lima to accelerate signing, with delivery still nominally planned for early 2027. Next milestone: implementing contract signature, date unknown.
Three K2 tanks and six K808 wheeled armored vehicles built by Hyundai Rotem for export were displayed at Peru's Independence Day military parade in Lima over two days from July 28, 2026 — appearing at the official event even before a final export contract has been signed. The vehicles fall under the framework agreement signed in December 2025 between Hyundai Rotem and Peruvian state firm FAME S.A.C. covering 54 K2s and 141 K808s worth roughly $2 billion, with a $270 million local plant investment and 30% local content. Defense industry officials now see a high possibility of concluding the K2 implementation contract in the second half of 2026 as Peruvian politics stabilize, and note KAI could pair it with a package proposal combining the FA-50 and KF-21 for Peru's fighter acquisition project.
Following Hyundai Rotem's second-quarter results, Daol Investment & Securities cut its price target to 380,000 won and lowered its 2026 operating profit forecast by 15% and 2027 by 5%, while DS Investment & Securities cut its target to 236,000 won and trimmed 2026 operating profit by 6.1% and 2027 by 12.6%. Both retained buy ratings. Analysts pointed to an expanded share of lower-margin domestic production: Poland's K2 EC2 phase entered early production at thinner margins while increased domestic fourth-phase K2 manufacturing reduced the export proportion, producing an unfavorable product mix. Peru, Iraq, and Romania were identified as the crucial near-term growth drivers, with DS assessing a high probability of a Peru contract signing following the new presidential inauguration, while Iraq and Romania timelines face potential delays from Middle East tensions and political schedules. Poland EC2 ramping in earnest in the second half could accelerate revenue recognition.
HD Hyundai Heavy Industries completed the basic design of the HDS-1500MGP, a 1,500-ton class diesel-electric submarine offered to replace the Peruvian Navy's aging German-built boats, and is now aiming to convert it into a detailed-design and construction contract by the end of 2026, with full-scale construction slated to begin in 2027. Shin Hyung-sik, vice president of HD Hyundai Heavy Industries' Naval Ship Division, said that "if the government backs us with close cooperation, I am confident we can absolutely win the order," which would mark Korea's first submarine export in 15 years. The submarine effort builds on a joint development contract signed in December 2024 and a broader April 2024 partnership under which HD Hyundai is already building four surface vessels (worth about 640 billion won) for Peru. The push follows HD Hyundai's unsuccessful bid in Canada's patrol submarine competition, which Germany won. No construction contract has been signed yet — the year-end decision is the watch item.
Hyundai Rotem defense division head Seo Jun-mo outlined the company's strategy to leverage Poland as a springboard for K2 tank exports into Eastern Europe, the Middle East, and Asia. In an interview at Eurosatory 2026, he identified Peru and Romania as key near-term markets, and confirmed that the K2ME Middle East variant development is complete, with a contract expected in H2 2026 or H1 2027. Separately, Hyundai Rotem partnered with Germany's FFG to bolster K2 tank support capabilities in Poland.
Hanwha Aerospace, Hanwha Systems, and Hanwha Ocean made their debut at FIDAE 2026, Latin America's largest defense exhibition in Santiago, Chile (April 7-12). Showcased the Tigon wheeled armored vehicle, K9 howitzer, SAR satellite, and Jangbogo-III submarine. Hanwha Aerospace signed an MOU with Spain's Indra Group to jointly pursue Chile's armored vehicle modernization program, combining Hanwha platforms with Indra mission systems.
KOTRA's Korea Defense Industry Trade Support Center operated the largest-ever Korea Pavilion at FIDAE 2026 in Santiago, Chile, bringing 31 Korean defense companies together for a coordinated push into the Latin American market. K-Defense exports are expected to surpass $20 billion in 2026 as the number of export destinations expanded to 16 countries in 2025. The government is pairing defense sales with financing packages through K-SURE and KEXIM to compete against established Western suppliers.
Peru signed a strategic framework agreement with Hyundai Rotem for 54 K2 Black Panther tanks and 141 K808 armored personnel carriers, with Korean media estimating the value at more than 2 trillion won (~$1.3 billion). This marks the first deployment of the K2 in Latin America and the largest ground equipment sale in the region. The program involves cooperation between Hyundai Rotem and Peru's state-owned Army Weapons and Ammunition Factory (FAME), with implementing contracts expected to be finalized in 2026.
HD Hyundai Heavy Industries signed a contract with the Peruvian Navy to jointly develop next-generation submarines — the company's first-ever submarine export deal. The basic design phase began in January 2026 for an 11-month period. This is separate from the existing 4-vessel surface combatant project (frigate, patrol vessel, landing craft) worth 640 billion won with Peru.