Korean defense companies aim to make inroads into Europe

An overview of the Hanwha Integrated Exhibition Hall at the International Defence Industry Exhibition (MSPO) in Kielce, Poland. [Courtesy of Hanwha Aerospace Co.]

South Korean defense companies, which are coming under the spotlight in the global defense market, are set to participate in the upcoming international Defense Industry Exhibition (MSPO) in Poland and make a significant push into the European market.

MSPO 2024, which is officially sponsored by the Polish Ministry of National Defense and state-owned defense group PGZ, will take place from September 3rd to 6th in Kielce, central Poland. The event, considered Europe‘s largest defense exhibition, will feature more than 700 companies from 35 countries in its 2024 edition.

According to sources from the defense industry on Monday, three defense subsidiaries of Korea’s Hanwha Group - Hanwha Aerospace Co., Hanwha Ocean Co., and Hanwha Systems Co. - will set up a joint booth at the event, focusing their efforts on the “Orka Project,” Poland’s naval modernization program.

The Orka Project involves the acquisition of three new submarines for the Polish Navy, with an estimated budget of 2.25 billion euros ($2.49 billion).

Hanwha Ocean plans to attract the attention of Polish military authorities with its independently designed 3,000-ton “Jangbogo-III” submarine, which is equipped with torpedo tubes capable of launching medium torpedoes, anti-ship, and cruise missiles, as well as vertical launch systems for submarine-launched ballistic missiles (SLBMs). It also features Hanwha Aerospace‘s world-first lithium-ion energy storage system (ESS) for submarines and an air-independent propulsion (AIP) system based on hydrogen fuel cells, enabling the submarine to stay submerged for up to three weeks.

Hanwha Ocean is also considering offering Poland technology transfer for the maintenance, repair, and overhaul (MRO) of the submarine as part of its bid.

Hyundai Rotem Co. is also targeting the European market with its K2 tanks, which are currently being delivered to Poland. The company signed a contract with Poland in 2022 to supply 1,000 K2 tanks and completed the first phase of the agreement for 180 units that year.

The defense industry is on alert to see whether additional contracts for some of the remaining 820 units will be finalized during the event.