Hanwha Aerospace forged a joint venture with Poland’s WB Group to manufacture guided missiles locally, marking South Korea’s deepest penetration into European defense markets as NATO’s biggest military spender seeks to reduce foreign dependence.
The agreement, signed Tuesday at Poland’s MSPO defense exhibition, gives Hanwha a 51% stake in the venture, with WB Electronics holding 49%. The facility will produce CGR-080 missiles with 80-kilometer range for Poland’s Homar-K rocket systems, creating approximately 250 skilled positions.
Poland has emerged as Hanwha’s crucial overseas market, rapidly boosting defense spending to more than 4.5% of GDP following Russia’s invasion of Ukraine. The country will spend 4.7% of GDP on defense in 2025, representing roughly $48.5 billion and making it NATO’s proportionally largest military spender.
Hanwha has supplied 288 Chunmoo launchers to Poland under contracts worth $5.1 billion. The missile production represents the next phase of a relationship that has seen Warsaw become one of Seoul’s largest defense customers as traditional European suppliers struggle to meet surging demand.
Initial production is expected to reach advanced levels before 2028, though the venture requires approval from Poland’s competition authorities. The partners also plan to market missiles to other European customers, potentially challenging established defense contractors across the continent.
Poland’s aggressive military buildup reflects broader European concerns about containing Russian expansion, with military spending across the continent rising 17% to $693 billion in 2024. The Hanwha partnership underscores how the conflict has accelerated defense industry consolidation as governments prioritize domestic production capabilities.
