Hanwha Aero and LIG Nex1 Strengthen Defense Cooperation with Romania

KCCI East Europe Economic Delegation, Establishing Cooperation Foundations

[Asia Economy Reporter Oh Hyung-gil] Hanwha Aerospace and LIG Nex1 have strengthened defense industry cooperation with Romania.

[Image source=Yonhap News]

The Korea Chamber of Commerce and Industry announced on the 9th that they participated in the Eastern European economic delegation and signed a memorandum of understanding (MOU) with the Romanian government and the state-owned defense company ROMARM, promising to enhance comprehensive defense industry cooperation.

Since Russia's invasion of Ukraine, Romania announced an increase in its defense budget from the previous 2% of its gross domestic product (GDP) to 2.5%. It hopes to strengthen global cooperation to achieve reorganization of military supplies and modernization of equipment.

Hanwha Aerospace plans to establish a broad cooperative relationship with Romania in the fields of ground weapons and ammunition production. Export opportunities are expected to open for advanced weapon systems such as the K9 self-propelled howitzer, which has succeeded in exports to nine countries, and the Redback infantry fighting vehicle (IFV), which is currently participating in the Australian Army's next-generation infantry fighting vehicle selection project.

LIG Nex1 agreed to cooperate on technology transfer, local production, and joint development of surface-to-air missiles in the future. Lee Hyun-soo, head of LIG Nex1's overseas business division, said, "Since the cooperation includes technology transfer and local production, it is expected to serve not only as defense cooperation but also as a foundation for economic cooperation between the two countries," adding, "We plan to strengthen cooperation in various defense fields."

Woo Tae-hee, standing vice chairman of the Korea Chamber of Commerce and Industry, said, "Korea's defense industry is the result of efforts made by the government and companies working together for self-reliant defense amid difficult security realities," and added, "Since it is already attracting global attention for its excellent economic performance and capabilities, we plan to fully support pioneering the global market so that it can establish itself as a representative Korean export product."