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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, October 8 – Hyundai Rotem is set to begin shipments for the second batch of K2 main battle tanks ordered by Poland starting next year, marking a major milestone in Korea’s largest-ever defense export project.
According to defense industry sources, the same K2GF (Gap Filler) model delivered under the first contract has already entered production, with export financing agreements slated for completion by January 2025. Key negotiations are now underway among the Export–Import Bank of Korea, the Korea Trade Insurance Corporation, and Poland’s BGK Bank.
Second-Phase Production Underway
Following the signing of the second implementation contract with the Polish Armament Agency in August 2024, Hyundai Rotem has begun detailed on-site inspections at the Bumar-Labedy plant in Poland. The inspections cover tool and equipment assessments, local supply-chain adjustments, and preparations for future MRO (Maintenance, Repair, and Overhaul) and local assembly of K2 tanks.
To date, 133 units of the K2 tank have been delivered to Poland, with the remaining 47 units from the first batch scheduled for completion by the end of 2024. The second contract will deliver 116 additional tanks by 2027, with 31 units due next year.
From 2028 to 2030, production of the K2PL variant will take place locally in Poland, followed by the delivery of support vehicles between 2028 and 2031.
Details of the $6.5 Billion Second Contract
The latest ₩8.98 trillion (approx. $6.5 billion) contract, signed on August 1, includes 180 K2 tanks, 81 support variants such as bridge-laying, recovery, and obstacle-clearing vehicles, as well as technology transfer, ammunition, and spare parts.
The K2PL, or “Poland-specific K2,” will feature advanced defense systems such as an Active Protection System (APS) against anti-tank guided missiles and drones, an Anti-Drone System (ADS) for electronic jamming, and an RCWS (Remote-Controlled Weapon Station). Upgraded composite armor will also enhance battlefield survivability.
Export Financing — The Critical Piece
Securing an export financing package remains the final step before the second contract takes full effect. Without it, Hyundai Rotem cannot receive down payments or make payments to subcontractors, which are vital to ensuring stable project execution.
The current financing structure under discussion calls for Poland to pay approximately 20% of the total contract value upfront, while the remaining 80% will be financed jointly by Korean policy banks and BGK, with global lenders participating under Polish government guarantees.
This structure is designed to lower Poland’s borrowing costs while securing predictable funding for long-term defense cooperation between the two nations.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
