Negotiations between the South Korean company Hyundai Rotem and Poland on the contract for the supply of K2 tanks have reached an impasse

K2 main battle tanks

Negotiations between the South Korean company Hyundai Rotem and Poland on the second contract for the supply of K2 main battle tanks have reached an impasse. This raised concerns about the future of local production and caused unrest among workers at a key Polish defense plant. The second phase of the deal, which was originally supposed to match the 180-unit order under the first contract, was engulfed in disputes over pricing, technology transfer, and local production conditions.

According to local sources, the value of the contract has increased to almost 9 trillion won (approximately 6.2 billion US dollars), which is more than double the original price, mainly due to the inclusion of locally produced K2PL options. This caused delays in concluding the contract, which was originally scheduled to be signed in September 2024. 

Poland plans to purchase 1,000 K2 and K2PL tanks, with the condition that at least half of them will be produced in the country. However, disputes between the Polish state-owned enterprise responsible for production and the Polish government over prices and delivery schedules led to delays. 

Hyundai Rotem, the developer of the K2 tank, has agreed to technology transfer as part of the deal. However, despite this, the process of concluding the contract has encountered difficulties, which highlights the difficulty of balancing the interests of the manufacturer and government customers.