Seoul: Hanwha Aerospace Co. has secured a contract to supply unmanned ground vehicles (UGVs) to the Army, the arms procurement agency announced on Thursday. This development is anticipated to accelerate the military's modernization efforts with high-tech capabilities.

According to Yonhap News Agency, the Defense Acquisition Program Administration (DAPA) revealed that the formal contract for the UGV platform, known as Arion-SMET, is set to be signed in the third quarter of this year. The Arion-SMET, a versatile six-wheeled electric combat robot, is designed to assist infantry operations and reduce casualty risks on the battlefield. These vehicles are expected to be operational between 2027 and 2028.

The initial phase of the project is valued at approximately 49.6 billion won (US$33.5 million), with the total project value potentially increasing to 500 billion won, depending on future procurement demands by the Army. This initiative is part of the Army's "Army TIGER" program, which aims to transform its ground forces into a more agile unit using artificial intelligence technology amidst evolving warfare dynamics and a decrease in active-duty personnel.

DAPA had originally planned to finalize the procurement plan in June last year; however, delays occurred due to a dispute between Hanwha Aerospace and its competitor, Hyundai Rotem Co. Hyundai Rotem withdrew from the tender in March, alleging unfairness in the selection process that favored Hanwha.

DAPA asserted that the bidding process was fair and lawful, adhering to relevant regulations and procedures. "The final selection was determined following a comprehensive review of the bidders' proposals, field test evaluations, and performance verification outcomes," the agency stated.

Hanwha previously confirmed the completion of DAPA's performance evaluations on key requirements, including maximum speed and cruising range.