(Dec 10): South Korea has signed a preliminary agreement with Peru to supply battle tanks and armoured vehicles in its largest defence deal with a Latin American country, as it seeks to expand its presence in the global arms market beyond Europe.
The deal, if finalised, could surpass two trillion won (US$1.4 billion, or $1.81 billion), Yonhap News said, without citing sources. It includes the potential sale of 54 K2 tanks and 141 armoured vehicles by Hyundai Rotem Co to the Peruvian army with a goal to sign a contract by next year, South Korea’s presidential office said on Wednesday.
South Korea’s presidential office and Hyundai Rotem declined to comment on the contract amount when reached by Bloomberg News.
“The scale of ground equipment exports under the framework agreement represents the largest defence export to Latin America,” the presidential office said in a statement. It said if the deal is implemented, it would be the first time Korea exported the K2 tank to Latin America. Previously, it has only signed a deal to ship the tanks to Poland.
The announcement comes months after Poland signed a US$6.5 billion deal to purchase K2 tanks in the Nato member’s latest move to shore up its military capabilities following Russia’s invasion of neighbouring Ukraine.
South Korean defence manufacturers have gained a reputation for speed and reliability in recent years, honed by decades of preparing their armed forces for a potential conflict with their heavily militarised neighbour, North Korea.
See also: Thailand hits Cambodia with airstrikes after soldier killed
South Korea is ranked as the world’s 10th largest weapons exporter, according to a March report from the Stockholm International Peace Research Institute, and is aiming to become number four by 2027.
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