Hyundai Rotem’s K2 tank. (Photo courtesy of Hyundai Rotem)
SEOUL, June 10 (Korea Bizwire) — South Korea is likely to sign a deal worth around US$6 billion to export additional K2 tanks to Poland later this month, government sources said Tuesday, in what would be Seoul’s biggest single arms export contract.
Under the deal set to be signed in late June, Poland will receive 180 K2 tanks, of which 117 units will be produced by South Korean defense contractor Hyundai Rotem Co., while the rest will be built locally by Warsaw’s state-owned PGZ, according to the sources.
A defense industry official confirmed the deal, noting that the signing ceremony will take place in Poland later this month.
The contract had previously been expected to be signed late last year, but was pushed back due to domestic issues in both countries, including the political turmoil in South Korea sparked by the declaration of short-lived martial law in December.
With such obstacles now cleared, the two countries are expected to sign the deal to follow up on an initial agreement in 2022 to supply 1,000 K2 tanks to Poland.
While Hyundai Rotem signed a contract worth about 4.5 trillion won (US$3.3 billion) later that year to supply the first batch of 180 K2s to Poland, it has yet to sign another follow-up deal.
The new deal is expected to be worth significantly more than the 2022 contract as it includes technology transfers and maintenance conditions, while the K2s to be produced in Poland will also be an improved variant.
Poland signed a series of deals with South Korean defense companies in 2022 to acquire K2 tanks, K9 self-propelled howitzers and FA-50 light attack aircraft amid a defense spending push after Russia’s invasion of Ukraine.
(Yonhap)
