South Korea-Poland tank deal faces potential delay

The delivery of K2 tanks from South Korea to Poland, valued at 9 trillion won ($6.27 billion), may be delayed due to the declaration and subsequent cancellation of martial law.

"Recent comments from the Polish side suggest that Warsaw is not in a hurry to finalize the deal, which could complicate the completion of the contract by the end of the year. It seems Poland is also factoring in the political situation in South Korea, which is causing concern," the source said, Caliber.Az reports per foreign media.

The delay in the contract's execution may be linked to a power vacuum in South Korea, which is leading to a loss of trust among partners. The defence industry, in particular, is highly susceptible to the impact of political crises, as it is heavily dependent on intergovernmental cooperation.

In July 2022, South Korea's defense industry reached a framework agreement with Poland for arms exports. This was followed by the signing of the initial contracts in August, totaling $12.4 billion. Since December 2023, the second phase of agreements has been progressively implemented, beginning with Hanwha Aerospace Co.'s delivery of 152 K9 self-propelled howitzers. 

Political developments in South Korea, however, have raised concerns about the outlook for finalizing the K2 tank contract by the end of the year, as it is the largest part of the anticipated second phase of agreements.

"The defense industry often involves negotiations between companies and governments or between governments themselves. During a power vacuum, we may be unable to respond adequately, which could lead to a loss of trust from our partners," an industry expert said, speaking on condition of anonymity.

By Naila Huseynova