Why Poland choose massive weapons from South Korea?

Introduction of the news regarding huge deal between Poland and South Korea

Big Deal between Poland and South Korea

Poland's Ministry of Defense officially announced on July 27 that it had signed a Framework Agreement to purchase three types of weapons from South Korea: the K2 tank, the self-propelled K9 armored howitzer, and the FA-50 fighter jets. With 980 K2 tanks, 670 K9 howitzers, and 48 FA-50s, it is the largest deal in Korea's defense industry history. The size of the contract has not been officially confirmed, but the size of the first contract alone is about $ 7.7 billion(KRW 10 trillion) and the business size is about $ 19.7 billion(KRW 25.8 trillion).

K2 Tank

K9 self-propelled howitzer

FA 50 fighter jet

This export also set records for the first export of a domestic main tank and the first entry into Europe for domestic fighter jets. "This arms contract with South Korea is the largest and most important in the introduction of defense industry in recent years," Polish Defense Minister Mariusz Błaszczak said. These weapon manufacturers, such as Hyundai Rotem, Hanwha Defense, and Korea Aerospace Industries (KAI), will sign an implementation contract corresponding to the main contract from the 18th of July to the end of August, and confirm the specific quantity and transaction amount.

 

Some foreign medias  are also paying attention to the Polish defense exports. Voice of America (VOA) reported that Korean weapons are emerging as an alternative to the global defense market with 'cost-effectiveness'. Bruce Bennett, a senior defense analyst at the Rand Corporation, a think tank in the US, said, “Korea is achieving results by targeting a niche market in the international defense market.”

However, some are raising questions about the background of Poland's choice of South Korean weapons over US and German weapons, and whether it will be able to pay for large-scale weapons purchases in a situation where the annual defense budget is less than $ 15.4 billion (KRW 20 trillion).

1. Why Poland selected Korean weapons?

At first, Poland actively considered American and German tanks with excellent performance and long-standing relationships as candidates for the next tank. In February, it also signed a contract to purchase 250 of the latest M1A2SEP3 tanks from the United States. However, the introduction of Korean K2 tanks was considered as a 'gap filler' to fill the gap, as it could only be introduced after 2025, but the quantity was only about 20. Germany also expressed its intention to support the Leopard II tank, but Poland rejected it because it was too old.

 

The situation changed dramatically when Russia invaded Ukraine at the end of February, and Poland began to actively consider the introduction of large-scale Korean weapons. Trusting NATO's (North Atlantic Treaty Organization) support promises and providing large numbers of their own tanks and self-propelled howitzers to Ukraine, there was a power gap, because it was difficult for the United States or NATO to quickly fill the gap.

 

The visit of Polish Defense Minister Mariusz Błaszczak in May last year became a decisive factor in Poland's defense exports. After a meeting with Defense Minister Lee Jong-seop, Minister Mariusz announced the size and intention of the first specific introduction, saying, "I will buy 1,000 K2 tanks, 670 K9 howitzers, and a significant number of FA-50 fighter jet." Then, as defense exports were discussed at the Korea-Poland summit held during the NATO summit in June, large-scale Polish defense exports entered the stage of success.

 

Experts analyze that the excellent performance of domestic weapons, the ability to supply quickly, and various support measures are the success factors of this 'export jackpot'. The K2 tank has similar performance to the latest version of the M1A2 tank, but is known to be slightly cheaper. Its strength is that it has the ability to dive at a depth of 4.1m, making it suitable for the Polish terrain with many rivers.

 

The K9 self-propelled howitzer is familiar to Poland as Poland has already imported about 120 units of K9 artillery in 2014 and produced the 'crab' self-propelled howitzer. About 700 units of the K9 have been exported to eight countries, including Turkey, India, Australia, Finland, and Egypt. The FA-50 fighter jet was co-developed with Lockheed Martin, which manufactured the F-16.

 

2. Local production of Korean weapons

Most of the weapons exported to Poland this time are made in Poland. In the case of K2 tanks, 180 units will be imported from Korea, and the remaining 800 units will be produced in Poland from 2026. The Polish local model is given the name 'K2PL'. It is a form of improved performance compared to those deployed in the South Korean military, such as an active protection device capable of intercepting enemy anti-tank missiles. 48 units of K9 self-propelled howitzers were introduced from Korea, and after that, about 620 additional self-propelled howitzers were produced locally. All FA-50s are manufactured in Korea, and 12 of them will be delivered early next year.

 

3. Can Poland afford to pay weapon?

Poland's defense budget this year is $ 14.3 billion (KRW18.27 trillion), including $ 1.5 billion (KRW 2 trillion) in NATO subsidies. The total cost of this three-piece set exported to Poland is about $ 19.7 billion(KRW 25.8 trillion), which is more than Poland's one-year defense budget. This raises the question of whether Poland can pay for its weapons properly. The DAPA (the Defense Acquisition Program Administration) explains that there is no problem with this. First of all, He points out that the Ukrainian war is the trigger and is making efforts to increase defense spending from various angles. It was decided to increase the defense expenditure from 2.2% of GDP last year to 3% this year, and a separate 'Army Support Fund' similar to the defense tax introduced by Korea in the 1970s was also created.

It is also pointed out that the future arms import price will be distributed over 10 years, so it will not be a big burden. The K2 tank will be introduced by 2034, the K9 self-propelled howitzers by 2030, and the FA-50 fighter jet by 2028, respectively. A military source said, "Combining Poland's own efforts, NATO's support, and the Korea Export-Import Bank's loan, there will be no difficulties in paying for weapons in Poland."

 

4. South Korea ranks 8th largest defense exports in the world

The rapid trend of Korea's defense exports is also confirmed by overseas specialized agencies and media. According to the Stockholm International Peace Research Institute (SIPRI) analysis, South Korea's share of the global arms export market increased from 1% in 2012-2016 to 2.8% in 2017-2021. It was ranked at the 8th level. The 1st rank was the United States (39%) and the 2nd rank was Russia (19%). France (11%), China (5%), Germany (4%), Italy (3%), and the United Kingdom (3%) took third to seventh ranks.

In particular, Korea experienced a rapid growth of 177% compared to 2012-2016. It is an overwhelmingly high level among the top-ranking countries. Japan's Yomiuri Shimbun also reported on the 3rd that "Korea is showing its presence in the global defense market." "As Russia's invasion of Ukraine continues for a long time, the Korean government and private companies are uniting as one to help NATO member countries win arms orders." It is pouring out,” he reported.

Korea's defense exports, which stood at between $2 billion and $3 billion annually until 2020, broke the record high of 7 billion dollars last year. The Defense Acquisition Program Administration and the industry are expecting exports of more than $10 billion to $15 billion this year, excluding Poland's.  If it goes according to plan, it will enter the top 5 in the world for defense exports.

The World's Biggest Arms Exporters [source: https://www.statista.com/chart/18417/global-weapons-exports/]