Armored vehicle deal with Peru underscores Korea's Latin American arms push

Hyundai Rotem's K-808 eight-wheeled armored personnel carrier [HYUNDAI ROTEM]

Korean defense company Hyundai Rotem announced Thursday that it is likely to export its K-808 White Tiger wheeled armored vehicles for the first time to Peru.

According to a company press release, Fábrica de Armas y Municiones del Ejército S.A.C. — the Peruvian state arms procurement agency — has picked the Hyundai Rotem-STX Engine consortium as the preferred bidder for a project to supply wheeled armored personnel carriers to the Peruvian Army.

The deal would see Hyundai Rotem supply 30 K-808 vehicles to Peru, marking the first sale of Korean-made armored personnel carriers to Latin America.

The deal is valued at 82.8 billion won ($60 million) and likely to be inked later this month, according to the company.

The K-808 was developed by Hyundai Rotem in 2012 in response to the Korean Army’s plan to acquire six- and eight-wheeled armored personnel carriers to help build rapid response forces modeled after U.S. Stryker combat brigades.

The vehicle passed its final qualification test in 2016 and entered mass production two years later. More than 500 K-808 vehicles have been delivered to the Korean Army, with the fourth round of mass production scheduled to begin later this year.

The K-808 and six-wheeled K-806 were developed to enhance the mobility and striking power of infantry over older and slower K-200 and K-21 tracked vehicles.

The K-808 is designed for fast troop deployment and reconnaissance missions in front line areas, while the K-806 is intended for mobile strike and reconnaissance missions in the rear.

The K-808 is equipped with tires that can continue to operate even after being punctured as well as an automatic control system that adjusts tire pressure based on ground contact. It also features an amphibious propulsion system that allows it to traverse rivers.

Hyundai Rotem is expected to use the latest deal as a springboard into the wider Latin American defense market.

In a press release, the company said it will actively seek additional business opportunities in neighboring countries and respond promptly to market demand.

The deal is the second defense contract signed between a Korean company and the Peruvian military this year.

Last month, Korean shipbuilder HD Hyundai Heavy Industries signed a 640.6 billion-won contract to build four warships for the Peruvian Navy.

Under the terms of its deal with SIMA Peru S.A., Peru’s state-owned shipbuilder, Hyundai Heavy Industries will build one 3,400-ton frigate, one 2,200-ton patrol vessel and two 1,400-ton amphibious warfare ships at SIMA’s shipyard by 2029.

The contract marked the largest naval ship order placed by a Latin American country with a Korean shipbuilder.

In addition to being designated as a “strategic partner” of the Peruvian government and navy for the next 15 years as part of the deal, Hyundai Heavy Industries was also named as Lima’s preferred bidder for additional projects to build five frigates, three offshore patrol vessels and two amphibious warfare ships.

BY MICHAEL LEE [lee.junhyuk@joongang.co.kr]