Two of South Korea’s top defence firms are in close competition once more to build the Philippines’ first-ever submarines.
Korean news outlets have reported that HD Hyundai is set to submit its proposal that will meet the requirements of the Philippine Navy’s Submarine Acquisition Programme.
Hanhwa Ocean, meanwhile, has offered its KSS-IIIPN design, including an alternative offer of its Ocean 1400 submarine model.
South Korea’s submarine bets
HD Hyundai’s potential entrance into Manila’s submarine programme is noteworthy considering that another shipyard is already in the competition against other defence firms from France, Italy, and Spain.
However, HD Hyundai has advantages that no other competitors have, namely, its already established relations with Manila that led to procurement contracts for six frigates and six offshore patrol vessels for the Philippine Navy.
Reports also claim that the South Korean shipyard is scheduled to deliver two Miguel Malval Flight II frigates to the Philippines by the second half of 2029.
On the other hand, Hanwha Ocean is recognised as one of the top contenders to build Manila’s first-ever submarines through its KSS-III PN design.
The design was derived from the KSS-III Batch II submarine class operated by the Republic of Korea Navy.
On top of a proven design, Hanwha Ocean has offered to build a submarine office and maintenance centre for the submarines, as well as extensively train Filipino sailors for the operation of advanced simulation systems.
A favourable situation for Filipinos
For the Philippines, the addition of HD Hyundai in the mix would not just provide the country with another viable submarine design to consider, but also an opportunity for a flexible financing agreement amid budgetary constraints.
Under the National Expenditure Programme for 2027 presented by Filipino Defence Secretary Gibo Teodoro, about PH50 billion is allocated for Manila’s armed forces modernisation programme.
This would leave about PHP76.97billion funding gap for the military’s other needs.
Teodoro has also raised the issue of lifting the USD300million cap on foreign loans for military procurement programmes, stating that such a mechanism only hampers the country’s bid to rapidly modernise its military’s capabilities.
With regard to South Korean submarine offers, both HD Hyundai and Hanhwa Ocean failed to secure bids to construct submarines for Canada and Poland.
This would mean that aggressive payment packages may be offered by the two defence firms for the Philippines to regain their footing following these losses.
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Elan Castanares 
Lucia Caporalini 
Andre Alfonso R. Gutierrez