HD Hyundai of South Korea wins Philippine Navy contract to deliver two new frigates.

South Korean shipbuilder HD Hyundai Heavy Industries has secured a contract to supply the Philippine Navy with two next-generation frigates by 2029, according to a December 26, 2025, report by The Korea Times citing DAPA. The agreement strengthens defense ties between Seoul and Manila as both face growing maritime pressure in the Indo-Pacific.

South Korean Company HD Hyundai Heavy Industries has won a major naval export contract to build two advanced frigates for the Philippine Navy, South Korea’s Defense Acquisition Program Administration confirmed in late December. The deal, reported by The Korea Times on December 26, 2025, positions the Korean shipbuilder as a central partner in Manila’s fleet modernization plans, at a moment when regional navies are accelerating investments in surface combatants amid rising tensions across key sea lanes.
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The Philippine Navy’s Jose Rizal-class guided-missile frigate is taking part in a multinational maritime exercise. Built by South Korea’s HD Hyundai Heavy Industries, the ship represents the Navy’s first modern surface combatant and sets the foundation for the newly ordered 3,200-ton frigates to be delivered by 2029 as part of the ongoing Philippine military modernization program. (Picture source: U.S. Department of War))

The contract tasks HD Hyundai, South Korea’s foremost shipbuilder, with the construction and delivery of two 3,200-ton multi-role guided-missile frigates. While the exact contract value was not disclosed, industry analysts estimate the deal at approximately $500 million based on comparable builds. This contract follows an earlier 2016 deal under which Hyundai also delivered two Jose Rizal-class frigates to the Philippine Navy, signaling growing trust in South Korean naval technology.

The new warships are expected to feature substantial upgrades in both firepower and survivability compared to the earlier Jose Rizal-class. According to defense industry insiders in Ulsan, the frigates will likely be equipped with a 3D air search radar, improved electronic warfare suites, and vertical launch system (VLS) modules capable of firing surface-to-air missiles - a notable leap forward in terms of anti-air warfare capability. Integration of a Korean Combat Management System (CMS) with South Korean-developed sensors and anti-ship missiles is also anticipated.

These vessels are being designed with operational flexibility in mind. The frigates will be optimized for multi-domain warfare in littoral and open-sea environments, reflecting the Philippine Navy’s evolving doctrine as it pivots from counter-insurgency support to blue-water capability. The acquisition aligns with Horizon 3 of the Armed Forces of the Philippines (AFP) Modernization Program, the most ambitious and strategically significant phase of Manila’s long-term defense development effort.

Launched in 2013 and divided into three rolling phases, the AFP Modernization Program was conceived in response to mounting external security challenges, especially in the South China Sea. Horizon 1 (2013–2017) focused on the acquisition of basic military hardware, including light attack aircraft and maritime patrol assets. Horizon 2 (2018–2022) advanced those efforts with major capital ship acquisitions, radar systems, and missile-capable platforms. Horizon 3, spanning 2023 to 2028, represents a fundamental shift toward force projection, combat readiness, and deterrence capability. It prioritizes high-end platforms such as submarines, multirole fighters, long-range missile systems, and advanced surface combatants, such as the newly ordered frigates.

This latest frigate deal builds directly upon the foundation laid by the earlier delivery of the Jose Rizal-class frigates, which represented the Philippine Navy’s first modern guided missile warships. Under a 2016 contract worth approximately $337 million, HD Hyundai (then Hyundai Heavy Industries) constructed and delivered BRP Jose Rizal (FF-150) and BRP Antonio Luna (FF-151), commissioned in 2020 and 2021, respectively. These ships were derived from the South Korean Incheon-class design but tailored to Philippine specifications. While effective platforms, the Jose Rizal-class lacked some advanced systems, such as VLS and towed-array sonar, at delivery, with future upgrades anticipated.

The new frigates now under contract are intended not merely as replacements or complements but as generational enhancements over the Jose Rizal-class. The Philippine Navy is expected to integrate these ships into a broader naval strategy that includes network-centric warfare capabilities, expanded maritime domain awareness, and joint operational interoperability with key regional allies.

Construction of the new frigates will take place at HD Hyundai's shipyard in Ulsan, with the first steel cutting expected in mid-2026. Both ships are scheduled for delivery before the end of 2029, with sea trials likely to begin by late 2028. Philippine naval officers will reportedly be embedded in the design and build phase, ensuring compatibility with operational requirements and allowing early crew training integration.

For HD Hyundai Heavy Industries, this contract further solidifies its position as a top-tier global supplier of mid-size surface combatants. As South Korea pushes to expand its defense exports under President Yoon Suk Yeol’s strategic doctrine of "Global Pivotal State," the Philippines remains a key partner in Seoul’s regional defense-industrial diplomacy.

As great power competition intensifies in the Indo-Pacific, Manila’s choice to anchor its fleet expansion with South Korean-built warships is both a message and a milestone. For HD Hyundai, it is a validation of its naval shipbuilding excellence. For the Philippines, it marks a strategic leap toward credible maritime deterrence.

Written by Alain Servaes – Chief Editor, Army Recognition Group
Alain Servaes is a former infantry non-commissioned officer and the founder of Army Recognition. With over 20 years in defense journalism, he provides expert analysis on military equipment, NATO operations, and the global defense industry.