Hyundai Rotem’s K2 tank deal drags on, sparking worker protests in Poland

Faculty and students of the Polish Military Academy visit the Bumar-Łabędy defense plant in Gliwice, Poland on Feb. 20. /Courtesy of Bumar-Łabędy

South Korean defense firm Hyundai Rotem’s second K2 tank export contract with Poland, which includes local production requirements, is facing delays in finalization. As the negotiations drag on, workers at the Polish defense factory set to produce the K2PL, the Polish model of the K2 tank, have staged protests over concerns about future work shortages.

According to Polish media outlet WNP on April 2, some union members at Bumar-Łabędy, a defense company in Gliwice, staged a protest in front of the factory’s main gate on March 26, calling for the swift signing of the second K2 tank contract. Bumar-Łabędy, which is 85.69% owned by Poland’s state-run defense group PGZ (Polska Grupa Zbrojeniowa), currently manufactures the Polish version of Germany’s Leopard 2 tank, the Leopard 2PL.

Workers protested out of fear that once current production projects end, they will be left without jobs. “PGZ promised us K2 tank production, but the contract still hasn’t been signed. There are no additional projects like the Krab self-propelled howitzers, and the ongoing Leopard 2PL project will wrap up in a year or so,” they said. “Even if the contract is signed today, production won’t begin until 2028–2029, and in the meantime, the company will likely lay off workers to cut costs.”

After the protest, PGZ’s management issued a statement, saying, “This was only a small group of employees, and it’s an attempt to create division. PGZ remains committed to long-term job stability and employment growth.” The company, which will oversee K2PL production, has been negotiating with Hyundai Rotem regarding technology transfer and local production plans.

The second K2 tank contract with Poland was expected to be finalized last year but has been delayed due to Poland’s internal issues and the aftermath of the December 3 martial law crisis in South Korea. Like the first contract, it covers 180 tanks, but additional technology transfer conditions have doubled the total value to around 9 trillion won ($6.2 billion).

Under the second contract, some tanks will be produced in South Korea and delivered to Poland, while others will be manufactured locally as K2PL models. The K2PL is an upgraded variant tailored to Polish military requirements, featuring a hard-kill active protection system (APS) that detects and neutralizes enemy anti-tank weapons and a remote-controlled weapon station (RCWS) for unmanned turret operation.

The South Korean government is actively working to finalize the contract. Foreign Minister Cho Tae-yul visited Poland on March 5 and met with his Polish counterpart Radosław Sikorski. The two agreed to fully support the swift conclusion of the second K2 tank contract. A delegation from South Korea’s Defense Acquisition Program Administration (DAPA) also accompanied Cho on the visit.