South Korea and Peru have agreed to expand cooperation in the defense industry through the joint development of naval ships and promote cooperation in the mineral sector.

President Yoon Suk Yeol and Peruvian President Dina Boluarte announced the agreement on Saturday in a joint statement after their summit talks held on the sidelines of the Asia-Pacific Economic Cooperation summit in Peru.

In the joint statement, the two leaders said that cooperation in national defense and the defense industry has become a milestone in the development of a comprehensive strategic partnership between the two countries.

On the occasion of the summit, South Korea's HD Hyundai Heavy Industries signed a memorandum of understanding (MOU) with Peru's state-owned shipyard SIMA for the joint development of submarines.

Hyundai Rotem and Peru's Army Weapons and Ammunition Factory (FAME) signed a comprehensive cooperation agreement to enhance collaboration on Army ground equipment, while Korea Aerospace Industries and Peru's state-run aviation agency SEMAN signed an MOU for the joint production of KF-21 fighter jet components.

South Korea and Peru also signed an MOU on cooperation in the mineral sector to exchange information on supply chains of key minerals and conduct joint geological surveys and technological cooperation.