Korea eyes $3.8 billion in Redback armored vehicle exports to Australia

South Korea is expected to clinch a deal to export more than 5 trillion won ($3.8 billion) worth of armored vehicles to Australia, which is strengthening its defense capabilities in the face of China’s aggressive expansion policy in the Asia-Pacific region.

Eom Dong-hwan, minister of the Defense Acquisition Program Administration, Korea's state-run arms agency, said on Wednesday he expects Australia to announce the preferred negotiator for its multi-billion-dollar project to buy new infantry fighting vehicles (IFVs) in September.

“We expect to export 460 Redback armored vehicles to Australia. We’re preparing for it,” he told lawmakers at the National Assembly’s defense committee meeting.

The price of the Redback, named after the Australian redback spider, is estimated at 11 billion won a unit, bringing the total value of the expected deal to more than 5 trillion won.

Hanwha Defense Co., the manufacturer of the armored IFV, is currently competing with Germany's Rheinmetall KF-41 Lynx for the Australian weapons procurement project.

The Redback is a fifth-generation IFV, which Hanwha is developing in cooperation with Israel, Australia and Canada. It features state-of-the-art technologies such as tech sensor systems, which allow the crew to see through the vehicle’s armor.

HOWITZER PLANT IN AUSTRALIA

The Redback contract, if clinched, will be Korea’s second significant defense export deal with Australia.

Hanwha was awarded a contract worth around $800 million in December 2021 to supply its K9 self-propelled howitzers and armored ammunition resupply vehicles to the Australian Army by 2027.

Under the contract, Hanwha will supply 30 units of the K9 self-propelled howitzers and 15 ammunition resupply vehicles. In Australia, they will be branded as the AS9 Huntsman and AS10 armored resupply vehicles.

In April, Hanwha also said it has kicked off the construction of its first overseas facility in Geelong, a city southwest of Melbourne to manufacture howitzers and other artillery systems.

The facility, dubbed H-ACE, will be completed by 2024 to become the first foreign production base for a South Korean defense company.

K2 TANK DEAL WITH NORWAY

DAPA Minister Eom said the Korean government also expects to be named the preferred negotiator to export Hyundai Rotem Co.’s K2 Black Panther, a next-generation battle tank, to Norway in October.

Last week, Hyundai Rotem and Hanwha Defense signed formal contracts worth a combined $5.8 billion to export battle tanks and self-propelled howitzers to Poland.

The contracts followed Korea’s $15 billion deal last month to export 980 units of the K2 tanks, 648 units of the K9 self-propelled howitzers and 48 units of the FA-50 light combat aircraft to Poland.

The DAPA chief said the Korean government expects to sign the implementation agreement for the sale of the FA-50 light combat aircraft next month.

Korea’s defense companies exported a combined 9 trillion won worth of weapons in 2021.

So far this year, their weapons exports have reached some 25 trillion won.

Write to Han-Shin Park at phs@hankyung.com
In-Soo Nam edited this article.