Analysts in the securities industry are viewing Hyundai Rotem's second contract for Poland's K2 tanks as a signal for the resumption of large-scale defense exports.
The Ministry of National Defense announced on the 2nd (local time) that Minister Mariusz Błaszczak of the Polish Ministry of National Defense is expected to sign a contract after completing negotiations with Hyundai Rotem regarding the second K2 tank contract.
While the specific scale of the contract has not been disclosed, industry insiders estimate that the second contract will involve 180 K2 tanks and be worth approximately $6.5 billion (8.3 trillion won). This would be the largest scale for an individual defense export contract.
Byun Yong-jin, a researcher at iM Securities, noted, "This second contract with Poland carries significant meaning beyond simply achieving an order for a single corporation," adding that it serves as a milestone for both Hyundai Rotem and Korea's defense industry to rise to the next level.
In the securities industry, this contract is seen as establishing a solid foothold for exporting K2 tanks to neighboring countries of Poland.
Researcher Byun stated, "The quantity of the first contract was entirely produced in Korea, and there was insufficient basis to establish local production or maintenance capabilities," adding, "However, this contract will enable not only local production in Poland but also establish a crucial hub for maintenance and repair throughout Europe."
Countries in Eastern Europe, which have historically shared German or Soviet weapon systems, now have the opportunity to share maintenance infrastructure for the K2 tanks with Poland.
Choi Jeong-hwan, a researcher at LS Securities, said, "The K2PL is undergoing various specification upgrades, including active protection systems and drone jammers," and noted, "As the effectiveness of anti-tank weapons and drones has been proven through the Russia-Ukraine war, the number of countries wishing to acquire the K2PL is increasing, enhancing the export competitiveness of its development."
There are also analyses suggesting that large-scale defense export contracts will resume. Researcher Byun assessed, "The situation in our country, having undergone a change in government, was not conducive for smoothly proceeding with large-scale export contracts that involve close cooperation among the Ministry of National Defense, the Defense Acquisition Program Administration, and the private sector, but this contract dispels such concerns and serves as proof of the stabilization of domestic affairs."
He added, "This is sufficient to restore trust that large-scale export contracts, currently being negotiated with other European countries and in the Middle East, can be executed at any time in the future."