Poland Seeks $15B loan from South Korea to Fund Arms Purchase

  • Defensemirror.com Bureau
  • 06:39 AM, July 29, 2023
  • 1181
Poland Seeks $15B loan from South Korea to Fund Arms Purchase
K9 self-propelled howitzer

The Polish government has requested a loan worth 20 trillion won ($15.6 billion) from South Korea to finance a major defense purchase.

The discussions are facing difficulties as Korean export credit agencies (ECAs) have limited support, The Korea Times reported.

"Unlike low-credit countries, Poland is expected to reliably repay the funds if a contract is established, The government's proactive financial support is desperately needed,” The Korea Times reported an official from the defense industry as saying.

In the first contract for K2 tanks and K9 self-propelled artillery units, Poland obtained a loan from South Korea covering 70 percent of the cost of the order. This loan is estimated at 12 trillion won ($ 9.4 billion).

The South Korean government opposed additional financing options for this contract as it was not deemed beneficial due to the localization of production in Poland and the transfer of Korean technologies.

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