South Korea directs entire K2 Black Panther tank production to Poland amid exclusive production shift.

As reported by Junsupreme on July 9, 2025, based on a documentary trailer published by the South Korean Defense Media Agency (KFN) on July 5, Hyundai Rotem's K2 Black Panther main battle tank production line is currently operating at full capacity, producing more than 10 tanks per month as of July 2025, and all of this production is now being allocated exclusively to the fulfillment of the Polish defense contract. The documentary will also include imagery of the K2 tank during mobility and live-fire exercises conducted in Romania and Qatar, as well as scenes showing the internal production processes for core subsystems such as the gun, armor modules, and mechanical assemblies.
Follow Army Recognition on Google News at this link

The current focus on delivering the remaining units from the first 180-tank order and beginning work on the second batch explains the reallocation of Hyundai Rotem’s entire manufacturing capacity. (Picture source: South Korean MoD)

The development of the K2 Black Panther began in the mid-1990s as South Korea sought to replace its aging K1 tanks with a next-generation main battle tank. The initial system concept research was conducted between July 1995 and December 1997, followed by an exploratory development phase from November 1998 to December 2002, during which core technologies and components were validated. Full-scale development started in June 2003 and led to the public unveiling of the XK2 prototype on March 2, 2007. The prototype underwent a series of technical evaluations and field tests, culminating in a combat suitability certification in September 2008. Originally planned for deployment by 2011, delays in power-pack development, particularly with the Korean-made engine and transmission, pushed initial deployment back to July 2014. The K2 is recognized as the first main battle tank entirely conceptualized, designed, and developed in South Korea, featuring high levels of domestic content, including indigenous fire-control systems, armor, and eventually, power packs.

In this documentary, Hyundai Rotem has confirmed that the factory's full output is currently assigned to the Polish contract, with no parallel production for South Korean Army orders being carried out at this time. This shift marks a reorientation of the production schedule toward export priorities, following the delivery timetable outlined in the two Polish K2 procurement agreements signed in 2022 and 2025. Prior to this increase in manufacturing pace, South Korea's K2 tank production was structured around four official batches. Batch I was delivered from 2014 to 2015 and consisted of 100 tanks using German MTU engines and RENK transmissions. Batch II, from 2019 to 2020, produced 106 tanks with a Korean DV27K engine paired with a German transmission, after the domestic EST15K failed durability tests. Batch III, between 2022 and 2023, added 54 more tanks while continuing to use the hybrid configuration. Batch IV, approved in May 2023, includes 150 K2 PIP tanks that were expected to incorporate a fully domestic power-pack using the certified EST15K transmission and DV27K engine. Until the current shift in July 2025, Hyundai Rotem's monthly output averaged approximately 3 to 4 tanks, equating to around 30 to 50 units annually. The present rate of more than 10 units per month reflects a significant increase, and is entirely attributed to the demands of the Polish export contract.

The original agreement with Poland, signed in July 2022, covered the purchase of 180 K2 tanks, including 117 units to be built in South Korea and 63 assembled in Poland by PGZ in cooperation with Hyundai Rotem. Deliveries began in late 2022, and by March 2025, 110 tanks had been delivered. Poland expects to receive an additional 96 tanks before the end of 2025. A second contract, signed on July 2, 2025, includes an additional 180 tanks and is valued at approximately $6.5 billion. This second phase also involves shared production, with over 63 tanks to be assembled in Poland and the remainder to be completed at Hyundai Rotem’s facility. As part of the long-term framework, local production of 820 K2PL variants is scheduled to begin in 2026 and continue through 2034. Combined with the two South Korea–built batches, this brings Poland’s total planned K2 fleet to 1,000 units. The current focus on delivering the remaining units from the first 180-tank order and beginning work on the second batch explains the reallocation of Hyundai Rotem’s entire manufacturing capacity.

The KFN documentary trailer features footage from the K2 production floor, showing processes previously unreported in the public domain. These include fabrication of armored hull sections, assembly of gun systems, and integration of subsystems such as fire control and sighting components. It also includes visual documentation of factory personnel engaged in hands-on assembly work. The presence of live-fire exercises in Romania and mobility demonstrations in Qatar indicates that K2 evaluations and operational exposure are continuing in potential future export markets. Romanian forces have already conducted K2 field testing at the Smârdan range in 2024, and Romania is reportedly considering the procurement of up to 300 tanks to supplement its Abrams fleet. Discussions are also ongoing with Egypt and Slovakia. These efforts are linked to South Korea’s defense export strategy, which emphasizes delivery speed, customizable configurations, and local co-production arrangements.

The current allocation of all production resources to Poland may result in a temporary delay in deliveries to the South Korean Army. The 150 K2 PIP tanks ordered in May 2023 as part of Batch IV were expected to be delivered progressively through 2028. However, with Hyundai Rotem prioritizing export fulfillment, domestic deliveries could be postponed unless additional production capacity is secured or output is split across two assembly lines. The PIP variant integrates enhanced battlefield management systems, Korean gunner and commander sights, and the certified domestic power-pack, with both the DV27K engine and the EST15K transmission. These technical upgrades represent the culmination of a long development process aimed at achieving full domestic integration of all major vehicle components. Their adoption enables production independence and reduces dependence on foreign suppliers, which had previously caused delays in earlier batches due to engine and transmission shortages.

The decision to dedicate the entire K2 assembly line to Poland demonstrates the operational effects of foreign demand on national production schedules. Hyundai Rotem's ability to reach a production rate above 10 tanks per month reflects the removal of previous constraints linked to power-pack supply and production bottlenecks. However, this focus on a single export client could introduce the risk of deprioritizing domestic procurement unless output is expanded or balanced with future contracts. Poland’s framework agreement for 1,000 tanks through 2034, supported by local production of the K2PL, remains the largest single export program in the history of South Korea’s ground combat systems. Additional agreements with Romania or Egypt could further raise the required production tempo, potentially exceeding 60 units annually and forcing a long-term adjustment in industrial scheduling.

Hyundai Rotem’s current production configuration and exclusive dedication to Poland’s contract are shaping the future trajectory of K2 manufacturing. The shift reflects broader trends in South Korea’s defense industry, including the integration of export production with domestic capability development and the use of co-production to establish regional manufacturing hubs. As of July 2025, Poland is the only recipient of K2 tanks being actively produced. If other customers sign contracts within the next 12 to 24 months, Hyundai Rotem may face a requirement to increase output beyond current levels or invest in separate lines for different clients. The sustained operation of the factory at its current pace, above 10 tanks per month, is contingent on continued component availability and stable demand from foreign partners. The export-driven structure of K2 production is therefore a key factor in determining both the rate and direction of South Korea’s armored vehicle output over the next decade.