Seoul: South Korea's defense ministry has committed to continuing its collaboration in the arms industry with Poland, following a setback in a submarine contract bid. A South Korean defense firm was unsuccessful in securing a deal to supply next-generation submarines to Poland, which instead chose Swedish defense firm Saab for its Orka project.

According to Yonhap News Agency, Poland announced its decision on Wednesday, selecting Saab to provide three submarines for the multibillion-dollar Orka project. Hanwha Ocean Co., a South Korean defense firm, was among the contenders for the contract. Lee Kyung-ho, spokesperson for the ministry, acknowledged the efforts made by the government and related agencies to secure the project but expressed a commitment to maintaining and enhancing cooperation with Poland, highlighting ongoing large-scale arms deals.

Poland has become an essential market for South Korean defense exports, signing multiple agreements to purchase K2 tanks, K9 self-propelled howitzers, and FA-50 light attack aircraft. Earlier this year, Poland entered into a significant $6.5 billion contract with Hyundai Rotem Co. for a second batch of K2 tanks, marking South Korea's largest arms export deal to date.

Kim Joo-chul, spokesperson for South Korea's state arms procurement agency, pointed to the interconnectedness of European nations as a possible factor for losing the submarine contract, alluding to the European Union's "Buy European" policy. This initiative encourages prioritizing European firms for public procurement to support the regional industry.

South Korea is actively pursuing an expansion of its arms exports, aspiring to become the fourth-largest defense exporter globally. In line with these ambitions, Hanwha Ocean has been shortlisted as a preferred bidder for Canada's Patrol Submarine Project, which aims to acquire up to 12 submarines to modernize the Royal Canadian Navy's fleet.