South Korea is on the brink of a $6 billion tank agreement with Poland in June, Yonhap reports
Yonhap News Agency said Tuesday that South Korea is nearing an agreement to provide 180 K2 tanks to Poland for about $6 billion.
According to the agreement, Poland’s state-owned Polish Armaments Group will create the remaining tanks domestically, while Hyundai Rotem (064350.KS), a new business company specializing in industrial and defense contracts, would produce 117 tanks for South Korea.
Hyundai Rotem did not immediately respond to requests for comment.
According to an unnamed industry source, Yonhap stated that the signing ceremony will be held in Poland in late June.
In 2022, the two nations came to an arms agreement for $13.7 billion, the largest ever in Seoul, which included sending Poland South Korean K2 tanks, rocket launchers, and fighter jets.
The agreement was leveraged by South Korea to establish a military-industrial powerhouse that the defense firms of both countries anticipate would continue to provide Europe’s weapons needs for years to come.
As part of the larger agreement in 2022, the K2 tank supply contract was supposed to be finalized by the end of last year, but it seems to be delayed, in part because of South Korea’s political unrest, which was triggered by the brief imposition of martial law in December, Yonhap added.
