Poland and South Korea strengthen cooperation to produce 500 K2PL Main Battle Tanks.

As reported by the Polish Ministry of State Assets on March 27, 2024, recent discussions between Poland and South Korea have focused on enhancing collaboration within the defense industry, with particular attention to addressing technology transfer challenges. One significant point of discussion has been the partnership between Hyundai Rotem and Polska Grupa Zbrojeniowa SA (PGZ SA) for the K2PL tank project, highlighting the growing cooperation between the two nations.
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Hyundai Rotem plans to manufacture 500 K2PL Main Battle Tanks within Poland. (Picture source: Army Recognition)

On March 26, 2024, in an interview with Biznes Alert, General Euiseong Lee, vice president of Hyundai Rotem's defense systems, spoke about Poland's involvement in the manufacturing of the South Korean K2 Black Panther main battle tank, specifically through the K2PL tank program. General Lee emphasized the project's focus on technology transfer and local production, with plans to manufacture 500 tanks within Poland. The objective is to position Poland as a central hub for South Korean tank production in Europe, thus positioning Polish factories as competitive players in the European tank market.

From an economic perspective, the K2PL project is anticipated to have a significant impact on the Polish economy, with a Deloitte analysis projecting a USD 60 billion injection. Despite some concerns regarding Polish governmental audits of contracts, General Lee expressed confidence in the project's progress, underscoring Hyundai Rotem's dedication to supporting Poland's security and industrial development.

Further cooperation has been facilitated by recent amendments in South Korean legislation to increase the capital of the state investment bank (EXIM Bank), providing additional financing avenues for Polish arms purchases. This has resulted in a substantial loan from EXIM Bank and commercial banks totaling $16 billion for defense initiatives, aimed at strengthening bilateral cooperation between Poland and South Korea. It's important to note that the Export–Import Bank of Korea, known as Korea Eximbank (KEXIM), is the official export credit agency of South Korea, established in 1976. Its primary function is to support South Korea's export-oriented economy by providing loans and financing for major projects, aimed at facilitating economic cooperation with other nations.

Discussions are ongoing regarding the future increased financial support from the Korean government to the Polish Ministry of Defense, with further negotiations required to finalize the terms of this support, following a framework agreement established in December 2023. A meeting was held on March 25, 2024, at the Polish Financial Supervision Authority's headquarters, attended by key figures such as Kim Joo-hyun, Chairman of the Financial Services Commission of Korea, and Jacek Jastrzębski, Chairman of the Polish Financial Supervision Authority, to enhance collaboration, particularly in the financial sector alongside defense and nuclear collaborations.

This strengthened cooperation between Poland and South Korea will enable the development of new ammunition types for the Homar-K/K239 Chunmoo rocket system. (Picture source: Army Recognition)

As highlighted by Hanwha Aerospace CEO Jae-il Son in an interview with Defence24, the legislative amendment of KEXIM's lending capacity sets the stage for further collaboration in the defense sector. The partnership between Hanwha Aerospace and Poland, initiated with the delivery of K9 Thunder self-propelled howitzers in 2022 and K239 Chunmoo multiple rocket launchers in 2023, is expected to deepen through various initiatives focusing on technology transfers, local production, and the development of next-generation military hardware.

Central to this cooperation is the development of the K9A2, anticipated to be produced by a Polish company, and K9A3 self-propelled howitzers, which promise enhanced survivability, mobility, and autonomous capabilities. This underscores Hanwha Aerospace's strategy of integrating the Polish defense industry into its production processes, with a focus on technology transfer and localization, particularly mentioning the 155mm modular charge system, reflected in the K9 EC2 contract signed in December 2023.

In addition to equipment supply, Hanwha Aerospace aims to leverage the Polish industry's potential for the development of new ammunition types for the Homar-K/K239 Chunmoo rocket system, further expanding the scope of collaboration. Hanwha Aerospace's plans also include local production and enhancing logistics support for K9 users across Europe, strengthening Poland's role as a hub for Hanwha's European operations and complementing Hyundai Rotem's vision for the K2 main battle tank. Son also outlined Hanwha's strategy for adapting defenses against contemporary threats like drone warfare for vehicles such as the K9 and Redback, emphasizing the incorporation of anti-drone technologies and unmanned systems to enhance the effectiveness of Hanwha's military solutions.

The cooperation between Poland and Korea also includes Korean companies' participation in producing 155 mm ammunition, highlighting the depth of military collaboration between the two countries. Polish Deputy Minister Marcin Kulasek acknowledged the significance of the relationship and expressed a desire for ongoing collaboration, emphasizing the mutual commitment to enhancing defense ties and laying the groundwork for future collaborations in the defense sector.