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K9 self-propelled howitzers. (Hanwha Aerospace) |
[Alpha Biz= Reporter Kim Jisun] The second defense contract between Poland andHanwha Aerospace is expected to gain momentum.
According to the defense industry on the 4th, last month, the Polish government issued a request for proposals (RFP) to financial institutions for the payment of the 152 K-9 self-propelled howitzers contracted with Hanwha Aerospace at the end of last year. The contract size is approximately 3.4475 trillion KRW.
Domestic commercial banks are prepared to offer a syndicated loan (a group loan provided by multiple financial institutions under the same conditions). Additionally, many global financial institutions, including those in Europe, are known to have submitted RFPs under favorable conditions.
In 2022, the Polish government signed a basic contract with the South Korean defense industry to introduce 672 K-9 howitzers and 288 Chunmoo multiple rocket launchers, including a large-scale defense contract with Hanwha Aerospace.
Following this, in the same year, a first execution contract was signed to export 212 K-9 howitzers and 218 Chunmoo launchers. In December of last year, a second execution contract was signed to supply the remaining 152 K-9 units by 2027, contingent on the completion of a financial contract.
However, the second execution contract required the completion of the financial contract as a prerequisite, but delays in financial guarantees have pushed back the schedule. To address this, the government, in conjunction with the National Assembly, amended the Korea Eximbank (KEXIM) Act to increase KEXIM's capital limit from 15 trillion KRW to 25 trillion KRW, thereby improving the system for supporting defense contract guarantees.
The South Korean government has fully explained this situation to Poland. Poland has reportedly understood the situation and decided to use a general financial sector program for the remaining contracts.
The initial deadline for the second financial contract was set for June, but Minister of National Defense Shin Won-sik extended the deadline to November during his visit to Poland in June, and the government has provided comprehensive support.
Meanwhile, Poland still has remaining contracts with Hanwha Aerospace for 308 K-9 units and is pursuing a second contract with Hyundai Rotem for an additional 820 K-2 tanks following the initial 180-unit contract.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
