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Why South Korea Is Building a New Tank Plant in Peru

In an effort to gain a larger foothold in Latin America’s defense market, South Korea’s Hyundai Rotem manufacturer is seeking to launch a tank plant in Peru. As part of the $270 million dollar project, import for training will be followed by over a decade of domestic license-production, starting in 2029.

Since Hyundai’s K2 Black Panther main battle tank (MBT) remains the East Asian nation’s most advanced armored vehicle to date, its export capacity could be higher. Peru’s Commander General of the Army’s Logistics Command, Brig. Gen. Jorge Christian Arevalo Kalionowski, noted that the Hyundai proposal is “a 15-year plan, and during the first three years, the idea is to begin with imports that allow us to be trained in the operation and maintenance of our 8×8 vehicles and our main battle tanks.”

Since the Peruvian Army has already selected the K2 Blank Panther to serve as its replacement for the aging T-55 fleet, the opening of this Hyundai plant bodes well for the country’s defensive strategy.

Why South Korea Built the K2 Black Panther Tank

The Black Panther has earned a solid reputation over its last 10-plus years in service. The fourth-generation MBT features a wide array of sophisticated capabilities that make it a near-peer to newer models of the American-made Abrams series.

Seoul decided to embark on creating an indigenous tank series in order to bolster its defenses against North Korea. Critically, rather than importing additional M1 Abrams MBTs from the United States, it opted to create a fully homegrown tank, tailored for local conditions. Ultimately, Hyundai Rotem was tasked with building the Black Panther tank from the ground up for the Republic of Korea Army. 

The MBT runs on a Hyundai Doosan Infracore DV27K 12-cylinder diesel engine, which provides 1,500 horsepower. It features an automatic loader positioned in the turret bustler, similar to France’s Leclerc tank. However, the K2 uses a German Rheinmetall CN08 120mm/L55 smoothbore gun, produced under license in Seoul. This impressive gun can simultaneously detect, select and load the required type and amount of ammunition needed to take out a threat. 

Coupled with the Korean Smart To-Attack Munition, the K2 is capable of firing anti-tank munitions at targets up to 5 miles away. The Black Panther is also well equipped in terms of sensors, featuring a Radar Warning Receiver and radar jammer—which better protect the tank’s operators from incoming attacks.

The Black Panther’s top-tier capabilities have caught the attention of foreign client states. Over the summer, Poland signed a second multi-billion dollar deal with Hyundai to procure additional K2 MBTs. Sharing a border with Ukraine has forced Poland to bolster its defense line up significantly.

The incorporation of the Black Panther into Warsaw’s armored corps was undoubtedly a big win for the eastern European nation. If Hyundai’s Peru plans come to fruition, Lima will also benefit from possessing one of the most reputable tank platforms in service across the globe.

About the Author: Maya Carlin

Maya Carlin, National Security Writer with The National Interest, is an analyst with the Center for Security Policy and a former Anna Sobol Levy Fellow at IDC Herzliya in Israel. She has by-lines in many publications, including The National Interest, Jerusalem Post, and Times of Israel. You can follow her on Twitter: @MayaCarlin. Carlin has over 1,000 articles published over the last several years on various defense issues.

Image: Shutterstock / Flying Camera.



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