South Korea, Poland sign $5.8 billion tank, howitzer contract

HYUNDAI ROTEM

27/08/2022 10:34

By Hyonhee Shin
    SEOUL, Aug 27 (Reuters) - Two South Korean companies have
signed a $5.76 billion contract with Poland to export tanks and
howitzers, Seoul's arms procurement agency said on Saturday,
after Warsaw agreed to ramp up arms imports amid tensions with
Russia. 
    The contract, signed in Poland on Friday, is part of South
Korea's biggest ever arms deal, clinched last month with Poland,
which has been seeking to beef up its military in the face of
Russia's invasion of neighbouring Ukraine.
    Hyundai Rotem Co.  064350.KS  will ship K2 Black Panther
tanks, and Hanwha Defense, the defence unit of Hanwha Corp
 000880.KS , will send K9 self-propelled howitzers to Poland,
said the Defense Acquisition Program Administration (DAPA). 
    The parties have not announced the value of the entire deal,
which South Korean media estimated at up to 20 trillion won ($15
billion).  urn:newsml:reuters.com:*:nL8N2Z31RB
    "As defence exports are extremely important in terms of
sharing weapon systems, mutual logistics support and
strengthening security alliances, this export deal is expected
to contribute to our efforts to build solidarity with European
countries and expand the boundaries of our security
capabilities," DAPA said in a statement. 
    South Korean President Yoon Suk-yeol, who took office in
May, has vowed to beef up security cooperation with European
countries sharing the values of democracy and market economies,
while boosting the country's defence industry amid North Korea's
evolving nuclear and military threats.  urn:newsml:reuters.com:*:nL4N2Z91NW
    Yoon became the first South Korean leader to attend a NATO
summit in Spain in June as an observer, warning of threats to
those values.  urn:newsml:reuters.com:*:nL1N2YH0P1
    Poland agreed to buy 180 K2 tanks, an unspecified number of
howitzers and 48 FA-50 fighter jets under the deal. Friday's
contract covers a first instalment, DAPA said, without
elaborating on the numbers. An agreement for the jets is
expected next month. 
    The Ukraine invasion, which Russia calls a "special military
operation," has raised security fears among many former Eastern
Bloc countries. NATO member Poland has vowed to boost military
spending to 3% of gross domestic product and more than double
the size of its army to deter any attacks.

($1 = 1,341.8100 won)

 (Reporting by Hyonhee Shin; Editing by William Mallard)
 ((hyonhee.shin@thomsonreuters.com; 822 6936 1474;))