S.Korean defense firms receive $15 bn order from Poland

South Korea’s defense makers, namely Hyundai Rotem Co., Korea Aerospace Industries Ltd. (KAI), and Hanwha Defense Corp., clinched export deals with Poland valued in excess of 20 trillion won ($15.2 billion).

The deals encompass the sale of Hyundai Rotem’s next-generation main battle tank dubbed the K2 Black Panther, KAI’s FA-50 light fighter aircraft, and Hanwha’s K9 self-propelled howitzers.

According to the Polish government, Defense Minister Mariusz Blaszczak signed preliminary orders for the commissions on Wednesday, prior to signing an official contract. 

President of KAI Ahn Hyun-ho, President and CEO of Hanwha Defense Son Jae-il, and President and CEO of Hyundai Rotem Lee Yong-bae attended the signing ceremony. 

In May, Blaszczak visited the three companies' plants in Korea.

In terms of orders, Hyundai Rotem will supply 180 K2 tanks to Poland by year's end. 

The Hyundai Motor Co. subsidiary will enter into a technology transfer agreement with Poland from 2026 to locally manufacture 800 K2PL tanks. Meanwhile, Poland will modify the previous K2 tanks to become K2PLs, designed specifically for Poland's needs.

The Central European country will also purchase 48 of the FA-50 light attack aircraft from KAI this year to compensate for those being used to support Ukraine. 

Beginning in 2024, Poland will purchase more than 600 of the FA-50s and enter into a technology transfer agreement with KAI in 2026 to manufacture the aircraft on its own turf.

The Korean government has yet to announce such a development. 

Defense exports to Poland would be the first sales to Europe by the Korean industry heavyweights, boosting their confidence about wider adoption around the globe. 

The companies are currently eyeing tenders with Norway, Australia, Malaysia and Colombia.

They include Norway’s next-generation battle tank order worth $1.7 billion, Australia’s multibillion-dollar infantry fighting vehicle (IFV) project, as well as Malaysia and Colombia’s plans to buy light fighter jets in deals worth more than $1.7 billion.

Korea is forecast to grow into the world’s third-largest defense exporter within the next five years, up from its 10th-place rank as of late last year, industry sources said.

Write to Dong-Hyun Kim at 3code@hankyung.com
Jee Abbey Lee edited this article.