{"id":2198855,"date":"2022-09-01T02:16:30","date_gmt":"2022-09-01T02:16:30","guid":{"rendered":"https:\/\/www.nknews.org\/koreapro\/?p=2198855"},"modified":"2023-04-05T16:11:41","modified_gmt":"2023-04-05T07:11:41","slug":"south-koreas-defense-industry-looks-to-europe-with-major-polish-arms-deal","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/09\/south-koreas-defense-industry-looks-to-europe-with-major-polish-arms-deal\/","title":{"rendered":"South Korea\u2019s defense industry looks to Europe with major Polish arms deal"},"content":{"rendered":"
South Korea is entering the NATO defense market with aplomb. Its groundbreaking <\/span>deal with Poland<\/span><\/a> for tanks, howitzers and light combat aircraft may exceed <\/span>$15 billion<\/span><\/a> \u2014 Seoul\u2019s biggest arms deal in history.<\/span><\/p>\n Other Central European countries will closely <\/span>monitor<\/span><\/a> the implementation of the ROK-Poland deal, viewing South Korea as a potential partner in their own military modernization efforts, especially in the light of Russia\u2019s aggressive land grab this year.\u00a0<\/span><\/p>\n The size and scope of the deal are impressive. According to the framework agreement, published by the <\/span>Polish Armaments Agency<\/span><\/a>, Poland will purchase 1,000 Hyundai Rotem K2 Black Panther main battle tanks, 672 self-propelled Hanwha Defense K9 Thunder self-propelled howitzers and 48 Korea Aerospace Industries FA-50 Fighting Eagle light combat aircraft.\u00a0<\/span><\/p>\n The deliveries will be carried out in stages, including technology transfer and licenses to produce the tanks and howitzers in Poland. The stages break down accordingly:<\/span><\/p>\n NATO nations test surface-to-air defense systems in Poland as part of military exercises in June 2022 | Image: NATO<\/a><\/p><\/div>\n FORCE MULTIPLIER<\/b><\/p>\n South Korean defense companies are seizing the opportunity to deepen their involvement in the European market. In turn, this should translate into greater defense potential of the whole NATO alliance with respect to Russia. This trend opens a window of opportunity for ROK\u2019s defense industry to increase its supplies of military equipment to most or all NATO members.<\/span><\/p>\n Poland, a NATO member, has become a major advocate for <\/span>military aid to Ukraine<\/span><\/a>, donating weapons such as Soviet-era tanks (<\/span>T-72 MTBs<\/span><\/a> and <\/span>PT-91 Twardy MBTs<\/span><\/a>) and <\/span>Krab howitzers<\/span><\/a> to its eastern neighbor.\u00a0<\/span><\/p>\n On the one hand, Poland is purchasing military equipment from South Korea in part to replace the equipment donated to Ukraine. But more broadly, Warsaw\u2019s decision is part of the modified Plan of Technical Modernization of the Polish Armed Forces for 2021\u20132035, previously <\/span>adopted<\/span><\/a> in Oct. 2019. For example, tanks from South Korea will constitute the backbone of the Polish armored forces alongside American Abrams tanks. In April, Poland signed a contract for the purchase of <\/span>250 M1A2 SEPv3 tanks<\/span><\/a>, and in July announced the purchase of <\/span>116 used M1A1 SA tanks<\/span><\/a>.<\/span><\/p>\n The Polish minister of defense <\/span>admitted<\/span><\/a> that only South Korean manufacturers were able to deliver weapons of that quality at such short notice, and with such a broad collaboration with the Polish defense industry.<\/span><\/p>\n The South Korean offer was also selected due to the fruitful <\/span>cooperation<\/span><\/a> between the Polish and South Korean industries in the production of Krab self-propelled howitzers (120 chassis of the K9 for Krabs have been licensed-manufactured in Poland since 2014). In June, Poland and Ukraine signed a contract to deliver 60 Krabs to Ukraine, which was Poland\u2019s largest-ever arms export deal, <\/span>worth $650 million<\/span><\/a>.\u00a0<\/span><\/p>\n This illustrates how cooperation with South Korean partners may increase the export potential of the Polish defense industry.<\/span><\/p>\n A meeting on defense cooperation between Poland and South Korea in May 2022 | Image: Polish defense ministry<\/a><\/p><\/div>\n South Korea is already the biggest Asian investor in Poland, thanks to a strategic partnership declaration <\/span>signed in 2013<\/span><\/a>. Since 1991, over 300 South Korean companies have invested over $5.2 billion in Poland, according to Korea Eximbank statistics.\u00a0<\/span><\/p>\n In recent years, ROK firms have poured investment into Poland\u2019s electromobility sector. For example, LG Energy Solution\u2019s lithium-ion battery factory for electric cars near Wroc\u0142aw is <\/span>one of the largest EV battery factories worldwide<\/span><\/a>, with a 68 GWh annual capacity and <\/span>plans<\/span><\/a> to increase it to 100 GWh by 2025.\u00a0<\/span><\/p>\n South Korea is also interested in developing Polish strategic projects. In April, Korea Hydro & Nuclear Power <\/span>submitted<\/span><\/a> an offer to build nuclear reactors in Poland. Incheon airport is also a <\/span>strategic advisor<\/span><\/a> for Poland\u2019s Central Communication Port project.\u00a0<\/span><\/p>\n Further, Poland\u2019s roles as a member of the Neutral Nations Supervisory Commission since 1953, non-permanent member of the U.N. Security Council and vice-chair of the Sanctions Committee on North Korea in 2018\u20132019 enhanced political and security dialogue with Seoul beyond pure economics.<\/span><\/p>\n ROK FUTURE<\/b><\/p>\n President Yoon Suk-yeol envisions South Korea as one of the <\/span>world\u2019s top four<\/span><\/a> weapons suppliers, and the record arms deal with Poland puts Seoul <\/span>well on the way<\/span><\/a> to achieving this goal.\u00a0<\/span><\/p>\n According to <\/span>SIPRI data<\/span><\/a>, South Korea was already among the top 10 largest suppliers of weapons from 2017 to 2021, accounting for 2.8% of all global arms exports. It was also the world\u2019s fastest-growing exporter in that time, boosting arms exports 177% over the 2012-16 period. Asian countries, like the Philippines and Indonesia, which accounted for 16% and 14% of sales, respectively, will remain important buyers, but South Korea seeks worldwide distribution.<\/span><\/p>\n This year, ROK signed a <\/span>$3.5 billion deal<\/span><\/a> with the United Arab Emirates to export Cheongung-II medium-range surface-to-air missiles and a <\/span>$1.65 billion contract<\/span><\/a> to sell K9 howitzers to Egypt. In the years 2017 to 2021, around 24% of South Korean arms exports went to NATO countries such as the U.K. (14%), Norway (6%), Poland (3%) and Turkey and Estonia (with under 1% each). Defense industry collaboration would also be part of the <\/span>intensifying cooperation<\/span><\/a> between ROK and NATO.<\/span>\u00a0<\/span><\/i><\/p>\n The interest in South Korea\u2019s offer may be even greater if one takes into account the <\/span>huge disappointment<\/span><\/a> of NATO\u2019s Eastern Flank countries with Germany \u2014 one of the main arms suppliers in the region \u2014 due to its hesitant approach in supporting Ukraine with weapons and its <\/span>inability<\/span><\/a> to deliver replacement tanks to countries that had sent its Soviet-era tanks to Ukraine.<\/span><\/p>\n Ukrainian soldiers participate in a military exercise in Sept. 2018 | Image: Ukrainian defense ministry<\/p><\/div>\n MEETING THE CHALLENGE<\/b><\/p>\n The ultimate success of the South Korean defense industry over the coming years will be measured by its ability to deliver weapons on time and the efficiency of its collaboration with the Polish defense industry. This is even more important given some doubts from Polish experts about <\/span>cost details<\/span><\/a>, and whether FA-50 aircraft capabilities <\/span>are adequate<\/span><\/a> for Polish needs.\u00a0<\/span><\/p>\n Apart from proving the technical value that its exports offer, South Korea should also remember that weapons deals are always connected with policy making. Further development of defense cooperation with Poland and other countries in the region will require greater <\/span>interest<\/span><\/a> on South Korea\u2019s part in the security situation in Central and Eastern Europe, and a more decisive approach to Russia.<\/span><\/p>\n Edited by Arius Derr<\/span><\/i><\/p>\n\n