South Korean shipbuilding anchors Philippines’ naval modernization

The Philippine Navy is commissioning new South Korean-made warships as part of a rapid modernization spurred by China’s aggression in the South China Sea.

The BRP Diego Silang, the second of two frigates built by HD Hyundai, was commissioned in December 2025, six months after its sister ship, BRP Miguel Malvar, entered service. The vessels are armed with vertical launch MICA missiles from European multinational MBDA and C-Star anti-ship missile launchers from South Korea’s LIG Nex1.

The $550 million deal for the two frigates is part of a series of contracts between Manila and HD Hyundai. The company is building six patrol vessels for the Philippine Navy, bringing total deliveries to 10 ships. The Philippines is expected to order two more frigates for about $578 million, excluding weapons, with Hyundai considered the likely supplier due to platform commonality.

Recent confrontations in the South China Sea underscore Manila’s urgency. In December 2025, the Philippine Coast Guard reported multiple aggressive maneuvers by China’s maritime forces, including the use of water cannons against Philippine fishing boats near Sabina Shoal. Philippine Defense Secretary Gilberto Teodoro Jr. condemned China’s actions as dangerous and contrary to Beijing’s international obligations. The incidents highlight the Philippines’ imperative for an enhanced fleet to protect its exclusive economic zone.

Manila previously relied on other nations’ surplus vessels. “Shifting from second-hand to new ships is essential in any modern navy,” Rommel Jude Ong, a former Philippine Navy vice commander, told FORUM. “Second-hand vessels eventually create logistics and sustainability issues.”

Naval modernization is part of the Armed Forces of the Philippines’ capability upgrade as it shifts its focus to territorial defense, including committing $35 billion over the next decade for weapons.

HD Hyundai launched commercial vessel operations at the Philippines’ Subic Bay shipyard in September 2025 and has expressed interest in establishing a regional hub in the Southeast Asian nation. The Philippine Navy leases part of the shipyard for repairs. Subic Bay formerly housed a United States military base and is 90 kilometers from Manila. Its strategic location near the resource-rich South China Sea offers potential for industrial growth and enhanced defense capabilities.

“Developing a domestic industrial base to support a modern fleet is essential to its sustainability,” Ong said. “It also addresses supply-chain resiliency requirements.”