Sign up now for FREE unlimited access to Reuters.com Register SEOUL, Aug 27 (Reuters) – Two South Korean companies signed a $5.76 billion contract with Poland to export tanks and shells, Seoul’s arms procurement agency said on Saturday, after Warsaw agreed to increase arms imports amid tensions with Russia. The contract, signed in Poland on Friday, is part of a larger arms deal South Korea struck last month with Poland, which is seeking to bolster its military in the face of Russia’s invasion of neighboring Ukraine. Hyundai Rotem Co. ( 064350.KS ) will send K2 Black Panther tanks and Hanwha Defense, the defense unit of Hanwha Corp ( 000880.KS ), will send K9 self-propelled howitzers to Poland, the Defense Program Administration (DAPA) said. ). Sign up now for FREE unlimited access to Reuters.com Register The parties have not announced the value of the entire deal, which South Korean media has estimated at up to 20 trillion won ($15 billion). read more “As defense exports are extremely important in terms of sharing weapons systems, mutual logistical support and strengthening security alliances, this export agreement is expected to contribute to our efforts to build solidarity with European countries and expand of our security capabilities,” DAPA said. in a statement. South Korean President Yoon Suk-yeol, who took office in May, has pledged to boost security cooperation with European countries that share the values of democracy and market economies, while boosting its defense industry. country amid North Korea’s evolving nuclear and military threats. read more Yoon became the first South Korean leader to attend a NATO summit in Spain in June as an observer, warning of threats to those values. read more Poland agreed to buy 180 K2 tanks, an unspecified number of howitzers and 48 FA-50 fighter jets as part of the deal. Friday’s contract covers a first tranche, DAPA said, without specifying the numbers. The deal on the jets is expected next month. The invasion of Ukraine, which Russia calls a “special military operation,” has raised security fears in many former Eastern Bloc countries. Poland, a NATO member, has pledged to increase military spending to 3% of GDP and more than double the size of its army to deter potential attacks. ($1 = 1,341.8100 won) Sign up now for FREE unlimited access to Reuters.com Register Reported by Hyonhee Shin. Edited by William Mallard Our Standards: The Thomson Reuters Trust Principles.
