Hyundai Rotem is reported to have entered the final stages of negotiations for a second contract to export K2 tanks to Poland. Negotiations regarding the quantity and price of K2PL (Polish model of the K2 tank) are underway with the goal of signing by the end of May. The government and defense industry plan to expand cooperation in overall defense areas such as shells and submarines, aiming to make Poland a forward base for exports to Europe.
The second contract was originally scheduled to be signed at the end of last year but was delayed due to internal circumstances in Poland. Although there were differences in pricing between the Polish defense company PGZ and the Polish government, it is said to have been completed to a certain level. A South Korean government official noted, "Negotiations are in the final stages, and we expect to sign by the end of May." Wladyslaw Kosiniak-Kamysz, the Minister of National Defense of Poland, also told local media on the 8th that they are getting closer to approving a version that can guarantee the national budget and security.
Poland has been pursuing a plan to purchase K2 tanks through ‘direct purchase and local production’ in the second contract. As Poland desires to produce its own weapon systems, the plan also includes transferring K2 tank production technology from Hyundai Rotem to Poland. If the second contract is signed, a production line for K2 tanks and space capable of maintenance, repair, and overhaul (MRO) will be established locally. Even if technology is transferred immediately, Poland lacks skilled workers, necessitating support from Hyundai Rotem for several years.
The government and defense industry expect that Poland will become a forward base for South Korean defense in Europe. Domestic companies also have production facilities, including Hanwha Aerospace. Earlier, in July 2022, South Korea signed an export contract with Poland that included K2 tanks, K9 self-propelled howitzers, and FA-50 light attack aircraft. Subsequently, a separate facility capable of MRO for FA-50s is being built at Polish air bases, and there is infrastructure for K9 self-propelled howitzers in Poland.
The South Korean defense industry plans to utilize the facilities to be built after the K2 second contract is finalized as a base in Europe. A defense industry official stated, "Exporting South Korean weapons to other European countries will provide geographical advantages for servicing in Poland," adding that "this benefits both South Korea and Poland." Quick supply of parts within Europe will also become possible. Hyundai Rotem is currently carrying out export negotiations for K2 tanks with Romania and Slovakia.
The South Korean defense industry is also promoting exports of shells. Hanwha Aerospace recently decided to establish a joint venture with the Polish private defense company WB Group to produce guided missiles for the Cheonmu multiple rocket launch system in Poland.
The defense industry is also pursuing plans to produce 150mm and 120mm shells locally. The aim is to easily send ammunition produced in Poland throughout Europe. Hanwha Aerospace and Poongsan are also reported to have expressed their intention to localize shells to the South Korean government.
Currently, Hanwha Aerospace and Hanwha Ocean are participating in the bidding for Poland's Orca project, known to be valued at up to 8 trillion won. The Orca project involves the procurement of three new submarines for the Polish Navy. Hanwha Ocean continues to collaborate with Polish defense companies like PGZ.