South Korea and Poland are leveraging a monumental $13.7 billion arms deal, the largest ever for Seoul, to lay the foundation for a military-industrial powerhouse that aims to cater to Europe’s long-term demand for weaponry.
South Korea’s rising arms sales surged to over $17 billion in 2022 from $7.25 billion the previous year, driven by increased demand amid geopolitical tensions in Ukraine, North Korea, and the South China Sea.
The arms deal with Poland, a crucial NATO member, involved a substantial quantity of weaponry, including Chunmoo rocket launchers, K2 tanks, K9 self-propelled howitzers, and FA-50 fighter aircraft. Its significant value and the extensive range of weapons involved set it apart even among the world’s major defense players.
Both South Korean and Polish officials assert that their partnership will enable them to conquer the European arms market beyond the context of the war in Ukraine. It is obvious, however, that this trend was sparked by the realities of the current situation in Ukraine.
K239 MLRS launching a rocket. Image via Wikimedia
“The Czech Republic, Romania, Slovakia, Finland, Estonia, Latvia, Lithuania, and others were thinking of buying defence products only in Europe, but now it is more well known that you can buy at a low price and have it delivered quickly from Korean companies,” said Oh Kyeahwan, a director at Hanwha Aerospace who was involved in the Poland deal.
The pricing details of weapons manufactured by South Korean companies are typically not disclosed, as they are often bundled with support vehicles and spare parts.
Hanwha Aerospace, which already held a 55% share of the global howitzer market, is expected to increase its market share to an estimated 68% through the Poland deal, according to research conducted by NH Research & Securities.
A couple of South Korean M270 systems. Notice how each of them has 12 launchers. Image credit: Republic of Korea Armed Forces via Wikimedia (CC BY-SA 2.0)
As part of the agreement, consortiums comprising South Korean and Polish companies will be formed to produce the weapons, maintain the fighter jets, and establish a framework for future supply to other European nations, as stated by Lukasz Komorek, Director of the Export Projects Office at the state-owned Polish Armaments Group (PGZ).
This collaboration will involve the licensed production of South Korean arms in Poland, confirmed officials in Seoul and Warsaw. The plans include the construction of 500 out of 820 tanks and 300 out of 672 howitzers in Polish factories, commencing in 2026.
“We don’t want to just play the role of subcontractor, technological transfer provider and the purchaser,” Komorek said. “We can both create the synergy and use our experiences to conquer the European markets.”
According to Polish officials, South Korea’s ability to deliver weapons at an accelerated pace played a significant role in their decision-making process. The first batch of weaponry, consisting of 10 K2 tanks and 24 K9 howitzers, arrived in Poland in December, a few months after the agreements were signed. Subsequently, additional shipments have been made, including at least five more tanks and 12 extra howitzers.
In contrast, Germany, another major arms manufacturer, has yet to fulfill Hungary’s order for 44 new Leopard tanks, which was placed back in 2018.
South Korea’s weapons are specifically engineered to be compatible with U.S. and NATO systems, which adds to their appeal. South Korea is now ranked as the third-largest supplier of weapons to NATO and its member states, constituting 4.9% of their arms purchases.
However, South Korea’s share is significantly smaller compared to the United States, which accounts for 65% of NATO’s weapons procurement, and France in the second place at 8.6%.
Written by Alius Noreika
