Hyundai Rotem is seeking to export its K2 battle tanks to Romania. To support such efforts, Korea Trade Insurance Corp. will provide about $1 billion in pre-emptive financing to Romania. Photo by Hyundai Rotem
SEOUL, April 1 (UPI) — Korea Trade Insurance Corp., or K-Sure, said it would provide about $1 billion in pre-emptive financing to Romania’s Ministry of Finance to support that country’s defense exports.
The state-run organization said Romania plans to use the funds for government projects, with a primary focus on procuring defense equipment.
K-Sure said that the financing is contingent on the participation of South Korean companies in the resulting contracts.
The measure is expected to benefit several Korean corporations, which strive to tap into the Romanian defense market, including Hanwha Aerospace, Hyundai Rotem, and Korea Aerospace Industries, or KAI.
Hanwha Aerospace hopes to export its Redback infantry fighting vehicle, while Hyundai Rotem is promoting K2 battle tanks. KAI continues to promote the FA-50 light combat aircraft as a trainer.
“Finance is playing an increasingly significant role in global competition for contracts, particularly in such sectors as defense,” K-Sure President Jang Young-jin said in a statement.
“We will keep contributing proactively to achieving national policy goals, including advancing South Korea into one of the world’s top four defense powers,” he said.
According to the Stockholm International Peace Research Institute, South Korea ranks around 10th in the global defense industry, which is dominated by the United States, France, Russia and China.
The Seoul administration has reiterated its goal of joining the top four by 2030. Toward that end, it raised the defense research budget to about $4 billion for this year, up 19.2% from 2025.
