[Exclusive] Next Month on Poland's Independence Day, 'K-Defense Scores Another Jackpot' [Yang Nak-gyu's Defence Club]

$7 Billion Worth K-2 Tank Second Contract Signed Locally
Worsening Conditions Due to Prolonged Ukraine War and US Presidential Election

On the 11th of next month, Poland's Independence Day, another 'K-Defense Jackpot' will occur. Domestic defense companies have signed defense export contracts with Poland, and the second contract for K-2 tanks will be finalized next month. The export amount alone is $7 billion (approximately 9.64 trillion KRW), which is twice the size of the first contract.

[Image source=Yonhap News]

According to government officials on the 22nd, Poland decided to import $44 billion (approximately 60.64 trillion KRW) worth of domestic weapons in 2022. In the first contract worth $12.4 billion (approximately 17.09 trillion KRW), Poland agreed to acquire Hyundai Rotem's K-2 tanks ($3.4 billion), Hanwha Aerospace's K-9 self-propelled howitzers ($2.4 billion), Chunmoo ($3.6 billion), and Korea Aerospace Industries (KAI)'s supersonic light combat aircraft FA-50 ($3 billion).

Our government and Poland had to conduct second-round negotiations but faced difficulties due to financial support issues. When Poland became unable to receive financial support, it pursued a plan to purchase some weapons in the second contract without Korean government export financing support. As part of the second contract, the Polish government consecutively signed purchase contracts with Hanwha Aerospace for 152 K-9 self-propelled howitzers and 72 Chunmoo units in December last year and April this year. The announced contract sizes at that time were approximately 3.58 trillion KRW and 2.2 trillion KRW, respectively.

The remaining item is the K-2 tank. It is known that Poland still hopes for Korean financial support regarding the remaining second contract, including the K-2 tanks. Hyundai Rotem expressed that if government financial support is insufficient, it will use private banks to provide support. Poland responded positively to this, and it was decided to finalize the contract locally on Poland's Independence Day next month.

Poland's haste to introduce 'K-Defense' by raising its own funds and using private financing with higher interest rates than the government is partly analyzed as a judgment that the schedule for strengthening national defense should not be affected amid growing security concerns due to the prolonged Russia-Ukraine war. Poland, which borders Ukraine, fears that if Ukraine loses to Russia, it will become the frontline between the West and Russia, and has focused on strengthening its defense capabilities in recent years. Additionally, with the possibility of former President Donald Trump, who argues that support for Ukraine should be stopped, winning the U.S. presidential election this November, Poland's sense of security crisis is said to be increasing further.

Meanwhile, Polish President Andrzej Duda, who is making a state visit to Korea on this day, plans to visit Hyundai Rotem and Hanwha Aerospace's Changwon plants on the morning and afternoon of the 25th to inspect the production lines of the K-9 self-propelled howitzers and K-2 tanks imported by his country.

A Hyundai Rotem official said, "We are doing our best to finalize the second contract with the Polish Military Procurement Office and are coordinating some matters such as local production."