Suk Jong-geun, Administrator of the Defense Acquisition Program Administration (DAPA), and Jacek Siewiera, Head of the National Security Bureau in the Polish President's Office, confirmed that they discussed the second export contract of Hyundai Rotem's K2 tank following the declaration and lifting of the state of emergency. DAPA noted that despite the state of emergency, they would actively cooperate with defense exports, and Siewiera also reportedly gave a positive response.

According to military authorities and the defense industry on the 11th, Administrator Suk explained during a phone call with Siewiera on the 5th, shortly after the state of emergency was declared, that "DAPA plans to actively support the export of K2 tanks, so please rest assured." On the 9th (local time), Administrator Suk met with Deputy Minister of National Defense Paveł Bejda in Poland. During this meeting, Suk reportedly emphasized that the domestic political situation would not affect defense cooperation.

The 20th mechanized brigade of Poland operates the K2 Black Panther. /Courtesy of Polish Armaments Agency

DAPA also held meetings related to export projects normally on the 4th, the day the state of emergency was lifted. It was reported that there were no inquiries related to the state of emergency from the major defense cooperation countries. DAPA sent a letter to major partner countries stating that "the activities of domestic defense companies are proceeding as usual." A DAPA official said, "Contracts related to the K2 tank export are progressing according to procedure. The same goes for other projects."

One of the reasons for the delay in the second export contract of the K2 tank is that Poland's state-owned defense firm PGZ proposed a high price for the K2PL (K2 Poland) to the Polish government. PGZ cited reasons such as the construction of a factory for K2PL production and the military's requirements, setting a high price, while the Polish military is in a position to seek a lower price. The two parties have been negotiating since the beginning of this year but have reportedly still not found a compromise.

K2 tank. /Courtesy of Hyundai Rotem

The second export contract for the K2 tank consists of two parts with the Polish government and between Hyundai Rotem and PGZ. The contract with the Polish government involves Hyundai Rotem supplying K2GF to the Polish military, while the contract with PGZ focuses on Hyundai Rotem providing technology transfer and production base support for K2PL. The negotiations between PGZ and the Polish government must conclude before the discussions between Hyundai Rotem and PGZ can also be finalized.

In terms of timing, the second export contract is expected to be difficult to finalize within this year. The amount proposed by PGZ to the Polish government is known to be significantly higher than Hyundai Rotem's proposal. An industry official noted, "I understand that Hyundai Rotem and PGZ have agreed on a reasonable amount concerning technology transfer and production base support. We are currently waiting for the negotiations in Poland to proceed."

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