HD Hyundai Infracore secured a 92.3 billion won ($67.6 million) contract to supply engines for South Korea’s K2 Black Panther tanks, reinforcing its position as the military’s sole engine provider since 2019.
The Defense Acquisition Program Administration awarded the deal for DV27K engines, with deliveries scheduled through 2028 for an estimated 150-plus tanks. The contract marks another step in South Korea’s push for defense self-reliance, incorporating a fully domestic powerpack that combines HD Hyundai’s engines with transmissions from SNT Dynamics.
The 1,500-horsepower engines can propel the 56-ton tanks at speeds up to 70 kilometers per hour. HD Hyundai developed the engines after a decade of research, taking over from German suppliers that initially powered the K2 program.
The domestic contract comes as HD Hyundai expands internationally. The company has secured significant export deals, including 180 billion won for Polish K2 tanks and 313.1 billion won for Turkey’s Altay tanks. These export arrangements eliminate the need for consultations with foreign component suppliers, streamlining defense trade approvals.
While the contract provides steady revenue through 2028, HD Hyundai faces intensifying competition in global defense markets as countries prioritize domestic production capabilities. The company’s success in replacing foreign suppliers domestically could serve as a template for other nations seeking defense independence.
