# HD Hyundai teams with Croatia's Iskra on multirole corvettes
*The industrial partnership targets a naval procurement tender valued up to €1.6 billion ($1.8 billion), combining South Korean design technology with local Adriatic shipyard docks.*
**Published:** October 8, 2026
**By:** Hyun-jung Lee
**Section:** Shipbuilding & Defense — South Korea
**Format:** Company Watch
**Confidence:** medium
**Source:** https://eastasiabrief.com/shipbuilding/hd-hyundai-teams-croatia-s-iskra-multirole-corvettes-589
**Publisher:** East Asia Brief (https://eastasiabrief.com/)
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## What to know
- HD Hyundai partners with Iskra Shipyard for Croatian Navy corvettes valued up to €1.6 billion
- Local production model uses Rijeka and Šibenik docks to overcome European defense barriers
- Croatian defense authorities review industrial proposals following DEFCROS 3 presentations in October 2026
*Shipyard representatives shake hands as workers assemble vessel blocks beneath a towering gantry crane. (AI-generated image)*
HD Hyundai Heavy Industries announced Oct. 7, 2026, that it entered a strategic teaming agreement with Croatia's Iskra Shipyard to co-develop and build multirole corvettes for the Croatian Navy.
The partnership targets Zagreb's naval procurement plan to acquire two multirole surface combatants. The program carries an estimated value between €660 million and €1.6 billion ($720 million to $1.8 billion), according to Croatian defense records.
South Korea's largest shipbuilder generated 17.57 trillion won ($13.1 billion) in revenue in 2025. The company seeks to expand naval exports beyond its established markets in Southeast Asia and South America into European defense channels.
European defense procurement policies prioritize domestic industrial participation and local manufacturing offsets. Direct warship exports from East Asian shipyards often face regulatory and political resistance from European Union member states.
The alliance provides a model to bypass those trade barriers. HD Hyundai Heavy Industries will deliver naval vessel basic design, combat systems integration and production engineering, while Iskra Shipyard conducts hull fabrication locally.
Senior Vice President Kim Jae-rak signed the agreement for HD Hyundai Heavy Industries on Oct. 1 in Šibenik. Chief Executive Roko Vuletić signed on behalf of Iskra Shipyard.
Iskra Shipyard operates repair and construction facilities in Šibenik on the Adriatic coast. The company operates as a maritime subsidiary of Slovenia's Iskra Group, an electrical engineering and industrial automation conglomerate.
The Croatian yard expanded its industrial footprint by acquiring the 120-year-old 3. MAJ shipyard in Rijeka earlier this year. That acquisition added deep-water construction docks and heavy manufacturing berths capable of assembling large steel hulls.
The combined footprint of Šibenik and Rijeka allows the partners to build warship hulls entirely inside Croatia. Local construction satisfies domestic economic criteria set by the Croatian Ministry of Defense.
The agreement represents more than cooperation on a single project, Vuletić said. The partnership demonstrates that Croatian facilities can support complex European naval projects alongside international engineering groups, he said.
The pact establishes a starting point for an enduring naval partnership centered on the corvette program, an HD Hyundai representative said. The companies plan to integrate naval design capabilities with local shipyard infrastructure, the representative said.
Beyond surface combatants, the agreement extends to civilian and specialized maritime vessels. The companies agreed to explore joint engineering projects for commercial passenger ferries and roll-on, roll-off passenger vessels, known as Ro-Pax ferries.
The partners also established a joint development track for uncrewed surface vessels and autonomous maritime navigation systems. That work aims to connect Croatian research institutes and component suppliers with Korean naval software teams.
Croatia has accelerated its naval recapitalization to protect maritime borders and economic zones across the Adriatic Sea. Armed Forces Chief of Staff General Tihomir Kundid said in May that multirole corvettes will restore vital combat capabilities.
The planned corvettes will conduct anti-surface, anti-air and anti-submarine warfare. They will also perform maritime patrol and search-and-rescue operations across the Adriatic Sea basin.
The Croatian government intends to involve domestic shipyards directly in the corvette construction program, Defense Minister Ivan Anušić said earlier this year. Several international warship builders have approached Zagreb to pitch competitive vessel designs.
Competition for the Croatian warship program includes established European naval shipbuilders. Spanish state shipbuilder Navantia signed memoranda of understanding with Iskra Shipyard and design specialist AITAC on Oct. 1 in Šibenik.
Navantia submitted an initial proposal to Zagreb in March offering its Avante 2200 and Alfa 3000 corvette designs. Italian defense contractor Fincantieri signed preliminary cooperation agreements with Croatian shipbuilders in July to promote its own corvette design.
By teaming directly with Iskra Shipyard, HD Hyundai Heavy Industries matches the local industrial footprint offered by European rivals. The Korean shipbuilder relies on its proven delivery schedules and naval automation technology to differentiate its bid.
South Korean shipyards face saturated domestic naval order books and growing defense export ambitions. Hanwha Ocean and HD Hyundai Heavy Industries have competed aggressively for international naval contracts across North America, Europe and Latin America.
HD Hyundai Heavy Industries previously secured combat ship orders from the Philippines and Peru. The agreement in Croatia marks the shipbuilder's first structured industrial teaming agreement for surface warship production in the European Union.
Knowledge transfer forms a central condition of the alliance. HD Hyundai Heavy Industries agreed to train Croatian shipyard engineers and certify local machine shops to manufacture shipboard systems according to international military specifications.
The Croatian Ministry of Defense has not published a formal request for proposals or released a binding contractor selection deadline for the corvette procurement program.
Croatian defense procurement officials plan to review industrial participation submissions following technical presentations conducted at the DEFCROS 3 defense exhibition in Šibenik in October 2026.
## Impact map
| Event | Korea | China | Japan | Global impact |
| --- | --- | --- | --- | --- |
| Croatian corvette partnership | HD Hyundai secures European industrial footprint for €1.6B warship tender | no exposure, barred from European defense procurement | Mitsubishi Heavy Industries remains focused on domestic Mogami-class frigate program | European naval procurement opens to Asian defense engineering via local shipyard licensing |
## In this story
- **Companies:** HD Hyundai Heavy Industries, Iskra Shipyard
- **Tickers:** 329180.KS
- **Exposed:** Navantia, Fincantieri
- **Policy:** Economic Security
- **Impact:** Order Book, Supply Chain
## Primary sources
1. navalnews.com
2. navaltoday.com
3. daum.net
4. seenews.com
5. asiasis.com
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Cite as: East Asia Brief, "HD Hyundai teams with Croatia's Iskra on multirole corvettes," October 8, 2026. https://eastasiabrief.com/shipbuilding/hd-hyundai-teams-croatia-s-iskra-multirole-corvettes-589