Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Hyundai Rotem close to signing $6 bil. K2 export deal with Poland
Polish soldiers on K2 combat tanks take part in a military parade in Warsaw on Polish Army Day, Aug. 15, 2024, to commemorate the anniversary of the 1920 victory over Soviet Russia at the Battle of Warsaw during the Polish-Soviet War. AFP-Yonhap
By Lee Min-hyung
Hyundai Rotem is expected to sign a major export contract with Poland for K2 battle tanks, a deal worth $6 billion (8.16 trillion won), by the end of June, industry sources said Tuesday.
The Korean defense manufacturer plans to deliver 180 K2 tanks under the second export deal with Poland. According to industry officials, the signing ceremony is expected to take place in the European nation later this month.
The deal was supposed to be completed at the end of 2024, but it was delayed due to Poland’s internal political circumstances.
The contract would represent the largest single defense export in Korea’s history. In 2022, Hyundai Rotem exported the same number of K2 tanks to Poland. At that time, the deal was valued at 4.5 trillion won.
However, the second contract features upgraded functions for the combat tanks and a provision for technology transfer, maintenance, repair and operation (MRO) support by Hyundai Rotem.
Under the latest deal, Hyundai Rotem will also supply armored recovery vehicles and bridge-layer tanks to Poland.
“The long-delayed K2 export contract has come close to end, and the latest contract will pave the way for more Korean defense players to widen their revenue stream into other European and North American countries,” an industry official said.
Korea and Poland signed a framework agreement for large-scale weapons exports in July 2022, during the former Yoon Suk Yeol administration. In August the same year, Poland signed the first-phase contract worth 18 trillion won with Korea for 180 K2 tanks, 212 K9 self-propelled howitzers and 48 FA-50 light attack aircraft.
The upcoming deal will mark the first major defense export contract under the administration of President Lee Jae-myung.
The landmark defense contract is widely expected to serve as a stepping stone for broader defense exports across Europe and into Canada.
There is a strong possibility that Lee will travel to The Hague for two days starting June 24 to attend the NATO summit. If the visit proceeds as expected, it would mark his first meeting with Polish President Karol Nawrocki.
Canada is also widely expected to expand its defense budget to purchase new submarines, aircraft and armored vehicles. The United States has so far accounted for more than half of Canada’s defense procurement, but Canadian Prime Minister Mark Carney indicated a need to reduce its defense import reliance on the world’s largest economy.
Following the latest contract, shares of Hyundai Rotem closed Tuesday at a historic high of 168,300 won per share, up 9.71 percent from the previous trading day.