Poland doubles down on tanks with new South Korean mega-contract

Poland has signed a second multi-billion dollar defence agreement with South Korean industrial and defence giant Hyundai Rotem for the supply of 180 K2 battle tanks, in a move aimed at strengthening the country’s military capabilities amid heightened regional security concerns following Russia’s invasion of Ukraine.

The contract marks Poland’s continued investment in modernizing its armed forces and bolstering NATO’s eastern flank, Caliber.Az reports, citing foreign media.

This latest deal comes after months of negotiations and builds on an earlier 2022 agreement in which Poland purchased an initial batch of 180 K2 tanks from the South Korean manufacturer.

While no official value was announced for the latest agreement, Hyundai Rotem disclosed in a regulatory filing in early July that the contract is worth approximately $6.5 billion.

A distinguishing feature of the new agreement is its strong focus on domestic production and technology transfer. Unlike the first contract, which prioritized rapid delivery of Korean-made vehicles, the second phase includes local manufacturing in Poland, reflecting Warsaw’s strategic push to develop its national defence industry.

According to Poland’s Ministry of Defence, 61 of the tanks in this second order will be produced at the Bumar-Łabędy plant in Gliwice, a southern Polish facility known for manufacturing heavy military equipment.

“We wanted to ... send a clear signal that we are building arms plants throughout Poland, that technology transfer applies to everyone, and that the arms industry is the driving force of the Polish economy,” said Polish Defence Minister Wladyslaw Kosiniak-Kamysz during a contract signing ceremony.

The comprehensive agreement also includes the supply of support vehicles, along with a training, maintenance, and repair package—ensuring long-term operational sustainability for the new tank fleet.

Deliveries of the first tanks under the new contract are scheduled to begin next year, with Polish-based production expected to commence between 2028 and 2030.

As one of NATO’s most vocal proponents for increased defence spending, Poland has committed to allocating 4.7% of its GDP to military expenditures in 2025, with a further increase to 5% planned for 2026.

By Vafa Guliyeva