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Europe was K-defense's promised land. A new EU initiative threatens that.

Published: 26 Dec. 2025, 07:00

CHO YONG-JUN
[email protected]

Hanwha Ocean submarine KSS-III Batch-II's launching ceremony on Oct. 22. [YONHAP]

The introduction of the Security Action for Europe (SAFE) program is undermining not only Korea's growing foothold in Poland — the largest single‑country buyer of Korean weapons, with combined deals estimated at $23 billion since 2022 — but also in other European and Atlantic defense markets.

The 150 billion euro ($177 billion) initiative, announced in March, provides low-interest loans to member nations alike to purchase military equipment and jointly strengthen Europe's defense capabilities, but with an asterisk: a priority on European-made products.

SAFE, among other factors, is why the Polish Navy chose Sweden’s Saab over Hanwha Ocean to build three submarines for its 10 billion zloty ($2.79 billion) Orka program in November.

“To be fair, it’s ordinary for European countries to buy European weapons,” Prof. Jang Won-joon of Jeonbuk National University's defense industry convergence program, told the Korea JoongAng Daily. “Korea’s success in Poland in 2022 is an extraordinary case.”

As Canada joins SAFE, Korea's ongoing bid to sell submarines to the North American country is also being contested, along with potential future deals with Spain and Romania.

When the Polish government announced that it would purchase Saab’s A26 submarines over the Korean KSS-III Batch-II, it said the Swedish offer met “all criteria,” including “delivery time and operational capability in the Baltic Sea.”

And despite Hanwha Ocean's fleet performance being no less competitive than Saab's, the more attractive package that Sweden offered — deep collaboration with Polish industry to modernize the country’s dockyards, technology transfers and a strategic partnership with another fellow nation in the Baltic region — had eventually won the deal.

This stood in contrast to the Eastern European nation's decision to buy K2 main battle tanks, K9 self-propelled howitzers and FA-50 light combat aircraft in 2022.

K9 howitzers are seen during a firing drill held near the Northern Limit Line (NLL) on June 25. [NEWS1]

Poland picked Hanwha Aerospace, Korea Aerospace Industries and Hyundai Rotem as its partners because there were no other practical competitors — the Eastern European country needed new tanks and light fighter jets fast after sending its old ones to Ukraine to support its neighbor in its war with Russia.

But now, as those super-urgent needs are met, it’s more natural for European nations to seek long-term partners within Europe, according to Prof. Jang.

“Now that the battle lines are somewhat stabilized and German and French firms are trying to improve their production capacity, K-defense’s so-called golden time might not last very long,” he said.

The 150-billion-euro SAFE program is the EU’s newest rearmament tool, providing financial support to nations to boost their defense procurement through low-interest, long-term loans.

Hyundai Rotem's K2 tanks, bound for Poland, are positioned at the company's Changwon plant in Changwon, South Gyeongsang. [HYUNDAI ROTEM]

However, SAFE is based on a buy-European logic, under which at least 65 percent of the procured equipment’s component value should originate in the European Union, the European Economic Area, the European Free Trade Association or Ukraine, limiting non-European parts to 35 percent.

Spain and Romania — both members of the EU — have been working to modernize and replace their tanks and self-propelled howitzers, with Romania interested in up to 216 main battle tanks and Spain attempting to purchase 214 self-propelled howitzers and support vehicles. While the K2 and K9 are both competitive options used by several European nations, the batches built in Korea are unlikely to meet SAFE’s procurement standards.

Canada recently became the first non-EU nation to join SAFE, and news that the North American country is using EU funds to purchase its future fighter jets and submarines is a bad sign for Korea. Hanwha Ocean and HD Hyundai Heavy Industries allied to bid together on the Canadian Patrol Submarine Project, competing against Germany’s TKMS Type 212CD submarine, currently used by Germany and Norway.

The ongoing Canadian bid is also not just about purchasing a few submarines but is likely to be a comprehensive deal that includes so-called industrial technology benefits, local investments and further ties in defense and other fields. Germany has already purchased $1 billion worth of Lockheed Martin Canada’s combat management system for the Navy.

“Korea will still have opportunities with more urgent demands, or where offerings from other nations cannot meet the delivery timeline. But more nations are going to want to buy more than just the weapon system — they'll aim to develop their own production capabilities and infrastructure long term,” Prof. Jang said. “It’s more about forming a security alliance.”

The government’s role, therefore, is more critical than ever, as the case is not just about offering the best product but also about interdepartmental support and nationwide backing. National Security Adviser Wi Sung-lac also acknowledged Korea’s disadvantage against Germany in the upcoming Canadian submarine bid.

“Our submarines do not lack in terms of performance, but the competitor is a NATO member nation and their security cooperation, including SAFE, is very in-depth,” he said in a briefing on Wednesday, made after he visited Ottawa.

Admitting that Korea might not be as close a security partner for Canada as, say, Germany, Wi said he was focusing on strengthening Korea’s security ties with Canada.

“Whether Korea manages to win the Canadian submarine bid will be the deciding factor in the country actually becoming the fourth largest defense power or not,” Prof. Jang said, referring to President Lee Jae Myung's ambitious goal to make Korea one of the world's top four defense and aerospace powers by 2030.

“Korea is trying hard, but we still lag behind other first-world nation competitors.”

BY CHO YONG-JUN [[email protected]]