Hyung-Kyu Kim reports in The Korea Economic Daily that a significant development in South Korea’s defense industry is underway as Hanwha Aerospace Co., a major player in aerospace and defense systems, is poised to secure its sixth weapon deal in Europe and potentially another with the UK in 2025.
The company is on the verge of finalizing a groundbreaking contract worth 1 trillion won to supply K9 (or K9A2?) self-propelled howitzers to Romania, marking its first export deal with the country and the sixth in Europe. This deal comes amidst competition from defense companies in Germany and Turkey. Hanwha Aerospace’s expansion into the European market underscores the growing presence of South Korean defense firms globally.
Moreover, the company’s negotiations with the UK signal further opportunities for growth in the defense sector. Simultaneously, legislative changes are in progress to enable the Korea Eximbank to provide increased financial support to local export companies, potentially facilitating exports worth approximately 30 trillion won to Poland, Hyung-Kyu Kim writes. This revision aims to raise the policy bank’s credit extension limit, empowering Korean enterprises to expand their international reach.
The broader context of this development includes escalating arms competition in Eastern and Northern Europe following Russia’s aggression towards Ukraine in 2022. South Korean defense companies stand to benefit from this trend, with expectations high for further weapon orders in the region. Hanwha Aerospace’s success in securing these deals not only strengthens South Korea’s defense industry but also underscores its role as a significant player in the global arms trade.
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