The South Korean government said Wednesday final negotiations have concluded on a $6 billion deal to provide Hyundai Rotem’s K2 tanks to Poland.
The deal reportedly includes at least 180 tanks, making it South Korea’s largest export deal for a single weapon.
Poland signed a $22 billion deal with South Korea in August 2022 that included 180 K2 tanks plus 2012 K9 howitzers, 48 FA-50 fighters, and a number of K239 Chunmoo rocket artillery systems.
The 2022 package was South Korea’s largest-ever arms deal with a single nation. The new deal reflects the somewhat higher cost of the K2 due to upgrades made by Hyundai Rotem since 2022, plus higher maintenance costs than originally expected.
The deal calls for 63 of the 180 new tanks to be manufactured in Poland, in partnership with a Polish defense company called PGZ, so the price includes the necessary technology transfers. DAPA said the joint production arrangement for K2 tanks was compatible with the “ReArm Europe Plan,” a European Union (EU) initiative to produce more military hardware on European soil.
South Korean officials said the new deal would have been inked sooner, but for the inconvenience of former President Yook Suk-yeol attempting to declare martial law in December. Yoon was impeached later that month and removed from office in April. A special election to replace him was held in June and won by Lee Jae-myung of the left-wing Democratic Party.
Despite this political turmoil, South Korea’s Defense Acquisition Program Administration (DAPA) said the deal with Poland remained on track.
“The government consistently demonstrated its strong commitment to technology transfer and military cooperation, earning Poland’s deep trust through various policy supports such as defense export financing,” DAPA said.
South Korea became a major player in the worldwide defense industry under Yoon’s administration, entering the Top Ten of military exporters after its 2022 deal with Poland.
One of South Korea’s big advantages is that its military designs were influenced by long association with the United Stats, so its equipment synchronizes easily with U.S. hardware, while costing considerably less. Many South Korean defense systems can be maintained with parts and supplies designed for American systems.
The K9 howitzer was among the biggest early successes for South Korean arms manufacturers, which in turn boosted interest in the K2 “Black Panther” tank, which pairs up nicely with the artillery system. Poland bought so many K2 tanks because it was extremely pleased with the performance of its early acquisitions.
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