Defense exports to Poland to narrow Korea's trade deficit

By Lee Kyung-min

Exports of Korean-made fighter jets, tanks and artillery weaponry to Poland over the past year have topped 600 billion won ($463 million), a much-needed source of income for the country's rapidly deteriorating trade balance, data showed Sunday.

Korea's trade deficit continued for 15 consecutive months in May, dented by falling exports due to an extended slump in the semiconductor industry. Exports in May came to $52.24 billion. The trade deficit was $2.1 billion. The 15 months of deficit is the longest in 27 years since the 29-month trade deficit between January 1995 and May 1997.

Data from the Korea International Trade Association (KITA) showed that Korea's export of “tank and other armored vehicles” to Poland stood at $255 million in the first four months of this year. It already exceeded last year's exports of $201 million of the said items.

Included are FA-50 light attack fighter jets, K2 battle tanks and K9 self-propelled howitzers. The howitzer is an artillery weapon somewhere between a cannon and a mortar. They can be used with other artillery pieces, such as long-barreled guns, mortars and rocket artillery.

The April data followed a Korea-Poland agreement whereby the Central European country decided to buy up to 20 trillion won worth of Korean-made weapons.

In July of last year, the Polish government said it will buy 980 K2 tanks, 648 K9 howitzers, 48 FA-50 attack aircraft and 288 Chunmoo self-propelled multiple-launch rocket systems.

At that time, the industry estimated that the defense deal will generate $14.8 billion (19.5 trillion won) in income. But the sum total will rise to 30 trillion won over the next 10 years, as lifted by the exports of related manufactured goods.

Korea's export total to Poland in the first four months of the year stood at $3.09 billion, up 34.5 percent from the year before.

Korea registered a trade surplus of $2.71 billion with Poland. Poland has become the country's fifth source of trade income this year, after the U.S., Vietnam, Hong Kong and India.

Meanwhile, Korea Aerospace Industries (KAI), a local aerospace and defense firm, held a ceremony on the occasion of the first export of FA-50GF aircraft at its headquarters in Sacheon, South Gyeongsang Province, April 7.

The event was attended by Defense Minister Lee Jong-sup and Polish Deputy Prime Minister and Defense Minister Mariusz Błaszczak.

A total of 12 FA-50GFs will be delivered between August and December. The remaining 36 of the 48 will be delivered from the second half of 2025 to 2028 in the form of FA-50PL, the most advanced model of FA-50.