South Korea is eyeing a significant expansion of its defense cooperation with the Philippines, offering to supply two state-of-the-art, medium-sized submarines under the Philippine military’s Horizon 3 modernization program. The proposed deal, spearheaded by South Korean shipbuilding giant HD Hyundai Heavy Industries, is estimated to be worth around 2 trillion South Korean won, or approximately ₱90 billion.
The offer was revealed in a July 16 report by Korean news outlet Asia Economy, which detailed HD Hyundai’s ongoing push to dominate Asia’s growing naval defense market. The Philippines is currently one of the company’s top targets for expansion, with the submarine deal potentially marking a new chapter in Manila’s evolving defense strategy.
A strategic partnership in the making
The Philippines and HD Hyundai have a growing history of defense cooperation. Over the past decade, the South Korean firm has emerged as a trusted supplier for the Philippine Navy, winning contracts for a total of 10 warships under the first two phases of the Armed Forces of the Philippines’ (AFP) modernization program.
These contracts include:
- Two frigates delivered in 2016, forming the backbone of the country’s surface fleet
- Two corvettes ordered in 2021, featuring cutting-edge technology and long-range capabilities
- Six offshore patrol vessels (OPVs) ordered in 2022, which are now under construction
The corvettes alone are considered among the most advanced warships in the region, boasting a length of 118.4 meters, a beam of 14.9 meters, cruising speeds of 15 knots (28 km/h), and a range of 4,500 nautical miles (approximately 8,330 kilometers).
With this solid track record, HD Hyundai is positioning itself as the frontrunner in the Philippines’ push to expand its naval capabilities—this time, underwater.
Submarines: A game changer for Philippine naval power
If the deal pushes through, this would mark the Philippine Navy’s first venture into submarine operations—an area long considered essential for modern maritime defense but previously out of reach due to budgetary and logistical constraints.
Military analysts view the introduction of submarines as a strategic necessity for the Philippines, especially amid rising tensions in the West Philippine Sea and the need to strengthen territorial defense and maritime surveillance. Submarines would offer the country enhanced stealth, deterrence, and surveillance capabilities, giving the Navy a critical edge in protecting its vast archipelagic territory.
Horizon 3: The next frontier
The current offer falls under Horizon 3, the third and most ambitious phase of the AFP Modernization Program, which runs from 2023 to 2028. This phase aims to further transform the Philippine military into a more agile, capable, and modern fighting force.
According to defense sources, the submarine acquisition plan is one of the flagship priorities under Horizon 3. While discussions are still ongoing, South Korea’s offer is considered a strong contender, largely due to its established relationship with the Philippines and proven track record in delivering complex naval assets on time.
Other countries, including France and Spain, have also expressed interest in supplying submarines to the Philippines, but HD Hyundai’s long-standing partnership with the Philippine Navy may give it a competitive edge.
Regional implications
Beyond just a defense deal, the potential acquisition has wider regional implications. As tensions simmer across the Indo-Pacific region, especially in contested maritime zones, the Philippines’ efforts to strengthen its undersea warfare capabilities signal a bolder, more assertive defense posture.
For South Korea, the deal would also bolster its position as a global player in naval defense exports—joining the ranks of major exporters like the United States and France.
The Philippine Department of National Defense is expected to make an official announcement regarding the submarine procurement within the year. Should the deal be finalized, it would not only mark a historic milestone for the Philippine Navy but also underscore the growing strategic partnership between Manila and Seoul.
With an eye on future threats and evolving maritime challenges, the Philippines appears ready to dive deeper—literally and figuratively—into the modern world of naval warfare.