Hyundai Rotem, the railway and defense contractor under Hyundai Motor Group, is expected to seal a second K2 tank export deal with Poland worth 8.5 trillion won ($6.3 billion) as early as this month, marking a major follow-up to the initial contract after a three-year gap.
According to media reports Friday, Hyundai Rotem has completed major discussions with PGZ, Poland’s state-owned defense company, covering key aspects, including the number of tanks, and is now working out detailed arrangements necessary for the final signing.
Unlike the first agreement, which specified the initial delivery of 180 tanks out of 1,000 units, the second contract will detail ways for local production and technology transfer in Poland, as well as the additional number of tanks.
To bolster its credibility and expedite the negotiations for the second deal, the company reportedly showed its commitment by delivering nine K2 Black Panther tanks in addition to the 12 units in March. This brings the total delivered to 133 units, leaving 47 tanks remaining to fulfill the first contract.
On Thursday, the Polish Army’s 15th Gizycko Mechanized Brigade announced on Facebook, “The K2GF Black Panther tanks are now with us,” sharing photos of 9 tanks unloaded at the port of Swinoujscie. The brigade emphasized that these tanks marked another step forward in the modernization of the Polish military.
Although no exact timeline has been given for finalizing the second agreement, industry watchers observe that the process is running behind earlier market expectations, which had targeted the fourth quarter of 2024. It was primarily due to extensive negotiations with the Polish government on local manufacturing and technology transfer, along with South Korea’s political tensions sparked by former President Yoon Suk Yeol’s martial law declaration.
“In the case of K2PL models, which will be produced in Poland, there are a number of items on the table, ranging from the procurement of tank components, cost management, maintenance and repair procedures to the scope of technology transfer,” said an industry source on condition of anonymity.
Despite the overdue deal, industry insiders indicate that newly elected President Lee Jae-myung’s drive for the nation’s defense industry will accelerate negotiations with the Polish government.
“It is too soon to tell the impact of the new President,” the source added. “However, as we now have the defense control tower (which had been inactive for seven months), our hope is to see bilateral talks between Korea and Poland on bolstering defense ties.”
During his presidential campaign, Lee highlighted defense as a key strategic industry for propelling national growth, committing to specific support measures to become a “top four global defense power” after the US, Russia and France.
hyejin2@heraldcorp.com
