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Hanwha Aerospace Exports Cheonmu Multiple Launch Rocket System Worth 520 Billion Won to Estonia

Supply of Six Launchers and Three Types of Missiles
Foundation Laid for 10-Year Long-Term Supply
G2G Contract Signed
First Export to a Baltic State, Second Case in Europe
KOTRA Participates in Contract
Paving the Way for Follow-Up Exports and Entry into Northern Europe
From K9 to Cheonmu
Expanding Defense Cooperation with Estonia

The Korean multiple launch rocket system Cheonmu has been supplied to Estonia, one of the three Baltic states, for the first time, securing a foothold for entry into the Northern European defense market.


The Korea Trade-Investment Promotion Agency (KOTRA) announced on the 21st (local time) that it had signed a government-to-government (G2G) export contract with the Estonian Centre for Defence Investments (ECDI), under the Estonian Ministry of Defence, for the supply of the Cheonmu multiple launch rocket system at the Tallinn War Museum in Estonia.


Hanwha Aerospace has agreed to deliver six Cheonmu launchers and three types of missiles to Estonia over the next three years, with the total contract valued at 300 million euros (approximately 520 billion won).


Cheonmu is a core firepower asset operated by the South Korean military to counter North Korea's multiple rocket launchers and long-range artillery threats in the event of a contingency on the Korean Peninsula. It is capable of deploying high-explosive guided rockets and cluster guided rockets at a maximum range of 80 kilometers.


In Europe, the importance of long-range precision strike capabilities has been highlighted due to the Russia-Ukraine war, and Cheonmu has garnered attention as an alternative to fill gaps in military strength.

This contract marks the second such case in Europe following Poland, and it is the first export achievement targeting a Baltic Sea nation.


Since signing a contract with Hanwha Aerospace in 2018 to introduce the K9 self-propelled howitzer, Estonia has operated a total of 36 units, making use of Korean defense equipment.


Prior to this contract, the defense ministers of both countries continued discussions on defense cooperation, including signing a memorandum of understanding on the acquisition of Cheonmu in Seoul last October.


The Estonian government plans to invest more than 10 billion euros (approximately 17.35 trillion won) in strengthening its defense capabilities over the next four years in accordance with its Defense Development Plan 2026-2029.

KOTRA predicted that this contract would also have a positive effect on winning additional defense contracts in Estonia.


KOTRA participated in this contract as a party representing the Korean government.

Government-to-government (G2G) contracts are arrangements in which KOTRA, at the request of a foreign government, either acts on behalf of or jointly with domestic companies to supply goods and services, providing comprehensive support for contract negotiations, legal review, and consultations with the purchasing government.


This approach helps reduce contract risks for exporting companies and alleviates the burden of performance guarantees and delay penalties compared to business-to-business contracts.

On this day, KOTRA also signed a comprehensive export contract for Cheonmu to ensure long-term supply over 10 years, establishing a sustainable export structure.


Additionally, KOTRA signed cooperation agreements with both the Estonian Ministry of Defence and the Estonian Business and Innovation Agency (EIS) to expand G2G contracts and strengthen connections within the defense industry ecosystem.

KOTRA President Kang Kyungsung stated, "Based on the trust built since the export of the K9 self-propelled howitzer in 2018, defense cooperation has continued to expand," adding, "We hope that the scope of cooperation will further broaden with this Cheonmu contract."


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

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