Defense Export Target of 20 Billion Won... Will Romania Become a Stepping Stone? [Yang Nak-gyu's Defence Club]

Defense Minister Shin Won-sik Visits Romania and Poland
Romania Expands Defense Budget... Eyes on K9 Self-Propelled Howitzers

Attention is focused on whether Romania will provide a stepping stone to achieve this year's defense export target of 20 billion dollars (approximately 26.72 trillion won). If Romania imports domestic weapon systems, it will be the first case of K-defense being introduced.

K-9 Self-Propelled Howitzer Deployed at Forward Unit

According to the Ministry of National Defense on the 17th, Minister of National Defense Shin Won-sik will officially visit Romania and Poland from the 17th to the 19th. Minister Shin plans to discuss not only military cooperation but also defense industry cooperation during his visit to Romania. On the 18th, he will meet with the National Security Senior Advisor to the Romanian President and the Chairman of the Senate Defense Committee, and on the 19th, he will hold talks with Defense Minister Angel T?lv?r to discuss ways to expand defense and defense industry cooperation between the two countries. On the 19th, he will also pay a courtesy call on Prime Minister Ion Marcel Ciolacu. This visit is to implement follow-up measures in the defense and defense industry sectors following the bilateral summit held on April 23.

Defense companies have high expectations for Romania. Marking its 20th anniversary of NATO membership this year, Romania plans to increase its defense budget from the current 2% of GDP to 2.5%. It intends to invest 39.9 billion dollars (approximately 54 trillion won) in major weapon acquisitions by 2032 and actively respond to regional security.

Hanwha Aerospace has been negotiating exports of the K9 self-propelled howitzer and K10 ammunition resupply vehicle package with Romania. The negotiated quantities are 54 units of K9 and 36 units of K10, with a total contract amount reportedly reaching 1.4 trillion won. If Romania adopts the K9 self-propelled howitzer, it will become a weapon system used by a total of six NATO countries, including existing adopters Poland, T?rkiye, Norway, Finland, and Estonia.

Romania is also expected to proceed soon with a project to acquire infantry fighting vehicles. Hanwha Aerospace plans to challenge additional orders by promoting the Redback, which was developed through pre-investment for export. Hanwha Aerospace participated in the ‘Black Sea Defense & Aerospace Exhibition’ (BSDA 2024) held in Bucharest, Romania, from the 22nd to the 24th of last month, showcasing the K9, K10, and the Redback related to Romania’s armored vehicle acquisition project.

Romania is also interested in LIG Nex1’s portable surface-to-air guided missile system ‘Chiron’. It is known that Romania is pursuing the acquisition of 54 units of the Chiron portable surface-to-air guided missile system, worth approximately 123 billion won. Additionally, Romania is reportedly interested in Hyundai Rotem’s K2 tank.

Minister Shin plans to visit Poland from the 19th to the 21st to finalize follow-up contracts. Following the first implementation contract for the largest-ever defense export including K2, K9, FA-50 light attack aircraft, and K-239 multiple rocket launcher, the Korean government is expected to convey its strong will to promote follow-up contracts and encourage their conclusion.

On the 20th, Minister Shin will hold the 2nd Korea-Poland Defense and Defense Industry Cooperation Joint Committee with Deputy Prime Minister and Defense Minister Władysław Kosiniak-Kamysz. Afterwards, Minister Shin will visit the Minsk airbase where the FA-50 fighter jets are deployed, and on the 21st, he will attend the Korea-Poland Strategic Dialogue.