Korea, Romania set to sign $920M artillery export deal

Korea is poised to secure a $920 million deal with Romania to export K9 self-propelled howitzers to the eastern European country following a defense ministerial meeting.

Defense Minister Shin Won-sik, left, and his Romanian counterpart, Angel Tilvar, shake hands during their meeting in Romania on Wednesday. [YONHAP]

Korea is poised to secure a $920 million deal with Romania to export K9 self-propelled howitzers to the eastern European country following a defense ministerial meeting.

Romania's Defense Minister Angel Tilvar confirmed the decision to acquire K9 howitzers in a meeting on Wednesday with his South Korean counterpart, Shin Won-sik, who is on a weeklong trip to Eastern Europe, according to Seoul's Defense Ministry.

Romania plans to procure 54 K9 howitzers and 36 K10 ammunition resupply vehicles from Hanwha Aerospace, their South Korean manufacturer. The contract is estimated at $920 million.

"This represents Romania's largest arms acquisition in the past seven years," South Korea's Defense Ministry said.

The decision follows April's summit in Seoul between President Yoon Suk Yeol and his Romanian counterpart, Klaus Iohannis, in which they agreed to boost cooperation in defense and nuclear energy.

This move positions Romania as Korea's ninth export destination and tenth operator of the advanced Korean artillery system, following Poland's recent acquisition of the K9s. It comes amid heightened military activity in Eastern Europe in the wake of Russia's war in Ukraine.

The domestically developed K9 self-propelled howitzer from Korea commands nearly half the global artillery market share.

The system tops a list of 16 medium-caliber (152 to 155 millimeters) self-propelled howitzers in worldwide use, holding a 36 percent market share, according to a 2023 report by the Korea Defense Industry Association.

Since 2010, the K9 has accounted for 626, or 45 percent, of 1,401 transactions involving 155-millimeter self-propelled howitzers globally.

The K9's global market success is credited to continuous technological advancements that improve performance while maintaining competitive pricing. The K9 is priced at over 4 billion won, half the cost of competitors like Germany's PzH-2000. Analysts also highlight the effectiveness of a tailored export strategy that meets target countries' specific needs and circumstances.

"Romania has pledged that South Korea will be its optimal partner in its ongoing military modernization efforts," Shin said during the talks. "We anticipate a comprehensive defense and arms collaboration beyond mere arms sales to include joint production, cross-training and personnel exchanges."

Hanwha Aerospace confirmed its selection as the preferred negotiator with Romania but clarified that specifics regarding the contract amount and timeline are still pending final confirmation in its electronic disclosure on Thursday.

On the other hand, additional exports of K2 battle tanks to Poland are likely to be finalized in September, Commissioner of the Defense Acquisition Program Administration Seok Jong-gun told reporters on Wednesday.

Poland initially signed a basic contract to purchase 1,000 K2 tanks in 2022, securing a binding contract for 180 tanks. The contract for the remaining 820 tanks could be signed in the second half of this year.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]