Poland, on the brink of a regime change for the first time in eight years, faces concerns that defense equipment contracts signed with South Korea could be nullified following the general elections in October.
According to Reuters on Dec. 10 (local time), Simon Holownia, a member of the opposition alliance “Poland 2050,” stated in an interview with Polish private broadcaster Radio Zet that “agreements signed by the interim government of the Law and Justice Party (PiS) could be invalidated.” He remarked that after the Oct. 15 election, PiS should have limited its powers to state administration without spending the budget.
In the Oct. 15 elections, PiS, a nationalist right-wing conservative party, became the largest party in the lower house with 35.4% of the votes but failed to secure a majority. In contrast, the opposition coalition led by former Prime Minister Donald Tusk of the Civic Platform (KO), who had previously served as the President of the European Council, succeeded in winning a majority of seats, positioning themselves to reclaim power after eight years.
Such a political shift in Poland could potentially invalidate previous government agreements, posing a threat to South Korea’s defense exports.
Władysław Kosiniak-Kamysz, the leader of the Polish People’s Party (PSL), tipped to be the new Minister of National Defense, emphasized the importance of investing in Poland’s own defense industry in a media interview the day before. He noted that contracts signed after Oct. 15 by the PiS government would undergo analysis and evaluation.
Following Russia’s invasion of Ukraine, Poland, seeking to bolster its defense capabilities, had entered into a multi-billion-dollar arms purchase contract with South Korea. Poland’s emergence as a major buyer in the “K-defense” industry had raised domestic expectations. However, the issue of regime change, coupled with funding shortages, has led to growing concerns that the arms export deal could fall through. Last month, the Financial Times reported, “South Korea fears that some of its defense export contracts might be jeopardized due to Poland’s regime change and lack of funds.”
The Korean government, facing difficulties with the Poland defense export contract due to the financial support limits of the Export-Import Bank, discussed a joint loan form of financial support by calling in officials from the top five commercial banks last month to assist in financing.