Seoul:Hyundai Rotem Co., a defense affiliate of Hyundai Motor Group, announced plans to acquire the defense business of Hyundai Wia Co. for 358.4 billion won (US$252 million). This acquisition aims to bolster Hyundai Rotem's capabilities in weapons production.

According to Yonhap News Agency, Hyundai Rotem's acquisition involves key components for South Korea's K9 self-propelled howitzers and K2 main battle tanks. Bringing these capabilities in-house is expected to enhance the company's competitiveness in the global market, particularly for its flagship K2 tanks.

In pursuit of expanding its market presence, Hyundai Rotem signed a $6.5 billion contract in August 2025 to supply K2 tanks to Poland. Additionally, it reached an agreement with Peru to provide 195 ground weapons systems, which include 54 K2 tanks.

For Hyundai Wia, the sale is part of a broader strategy to shift its focus towards future mobility technologies, such as vehicle electrification and software-defined vehicles. The proceeds from the sale will be invested in new growth areas, including constant velocity joints, thermal management systems, and robotics.

This move is part of Hyundai Motor Group's broader efforts to streamline operations, allowing Hyundai Rotem to concentrate on defense manufacturing while Hyundai Wia focuses on next-generation automotive technologies.