Peru leaves K2 tanks out of its 2027 defense budget; minister says large tank purchase needs international tender

Peruvian Defense Minister Rafael Belaunde said the K2 purchase is not included in the 2027 defense budget bill or in the modernization priorities submitted to Congress, that the Army has not submitted an investment project plan for the tanks, and that while the strategic partnership with Hyundai Rotem stands, a large tank acquisition requires international competitive bidding, UpKorea News reported on October 15, 2026. Peru has not formally cancelled the December 9, 2025 general agreement with the Army and state firm FAME covering 54 K2 tanks and 141 K808 wheeled armored vehicles, nor announced a tender. Local media citing the ministry said a roughly 1.5 billion dollar advance payment had not been secured; the three K2 tanks that arrived in Peru on July 6 did not take part in the July 29 Independence Day parade. Lima had earlier told Seoul it aimed to sign by June 2026. DS Investment & Securities cut its Hyundai Rotem target price on October 6 from 236,000 won to 226,000 won and moved its expected Peru contract timing from the fourth quarter of 2026 to the first quarter of 2027, keeping a Buy rating; a Korea-Peru summit planned for December is viewed as the next opportunity. Hyundai Rotem had not responded to a request for comment.