Hyundai Rotem Co. is finalizing a 8.16 trillion won ($6 billion) contract with Poland for 180 K2 tanks, nearly doubling the price from its initial 2022 agreement despite delivering the same number of vehicles.
The South Korean defense contractor expects to sign the deal later this month after months of delays caused by Poland’s internal issues and Seoul’s recent political turmoil following former President Yoon Suk Yeol’s martial law declaration.
The contract represents the largest individual defense export deal for South Korea, with 117 K2GF units produced directly by Hyundai Rotem and 63 K2PL variants manufactured locally by Poland’s state-owned PGZ.
The steep price increase from the original $3.4 billion reflects Poland’s demands for an upgraded K2PL version, extensive technology transfers, and comprehensive maintenance support. Analysts note that while initial expectations called for more local production, delays in Polish manufacturing readiness have shifted more units back to direct Korean exports, potentially preserving Hyundai Rotem’s profit margins.
Poland has already received 46 K2 tanks from the first contract, with deliveries scheduled to complete by 2025. The deals form part of Poland’s broader military modernization following Russia’s invasion of Ukraine, with Warsaw ultimately planning to acquire 1,000 K2 tanks under a framework agreement.
The expanded contract highlights growing European defense spending but raises questions about cost efficiency as Poland pays significantly more for equivalent hardware.
