"Poland as a 'Hub' for 1000 Trillion Won Ukraine Reconstruction... Will Serve as a Bridge"

Interview with Im Hun-min, Ambassador to Poland
Overseas Missions Expanding Role as K-Export Forward Bases
K-Defense Industry Shows Strong Performance and Price Competitiveness... Demand Growing

"The scale of Ukraine reconstruction projects is expected to reach about 600 to 700 billion euros (approximately 1,000 trillion KRW). Poland is positioning itself as a hub for this project, and through partnerships with Polish companies, our companies can reduce costs and risks while leveraging the strengths of both countries' firms. The embassy will play an active bridging role in this."

Ambassador Lim Hun-min to Poland introduced in an interview with Asia Economy at the Ministry of Foreign Affairs building on the 5th that "we are focusing on building Korea-Poland cooperative relations for participation in Ukraine reconstruction projects."

He mentioned that defense exports are a representative win-win project in Korea-Poland relations. Ambassador Lim said, "Poland is bringing defense industry technology into its country and expects long-term export industrialization. Korea can also use Poland’s defense exports as a gateway to the EU and NATO markets."

Ambassador Lim Hun-min to Poland. Photo by Dongju Yoon doso7@

Poland is a regular importer of Korean weapons. Last year, contracts were signed with Hyundai Rotem, Korea Aerospace Industries, and Hanwha Defense, totaling about 20 trillion KRW. Since President Yoon Suk-yeol urged at the overseas diplomatic mission chiefs’ dinner on the 27th of last month to "act as Korea’s representative salesperson and serve as an export forward base," the closeness of Korea-Poland relations, which have a high proportion of defense exports, has become even more important.

Poland’s defense export scale is also expected to grow steadily due to strong public opinion on strengthening national defense. The National Defense Act, enacted in March last year immediately after the outbreak of the Ukraine war, passed the lower house with 450 votes in favor (out of 460 members) and unanimously in the upper house. The Polish government’s policy is that "sustainable economic growth is possible on the foundation of enhanced security." Ambassador Lim said, "Poland recognizes that establishing security brings not only regional stability but also continuous economic development," adding, "Ultimately, demand for Korean defense exports, which are high-performance, competitively priced, and quickly supplied, is expected to continue. We will further expand the breadth and depth of economic diplomacy through high-level exchanges."

Poland is a Central European production base for Korean companies and a forward base for European market entry. More than 300 companies have already entered. He said, "Many Korean companies are expected to participate in the Ukraine reconstruction projects that Poland is focusing on," and advised, "Small and medium-sized enterprises need sufficient prior research and understanding of Poland’s economic environment and legal system." He emphasized that detailed investigation and analysis of regional employment, wage levels, various incentives from central and local governments, logistics, land, and employment-related laws must precede, and as an EU member state, foreign companies entering Poland must comply with all EU regulations.

Poland’s economic growth rate last year was 4.9% (according to the Polish Central Statistical Office). The EU forecasts Poland’s economic growth rate at 2.5% for 2024.

Below is a Q&A with Ambassador Lim.

Expanding the Role of Overseas Diplomatic Missions as Export Forward Bases

- What is the most important role of overseas diplomatic missions as 'export forward bases'?

▲ First of all, it is opportunity discovery. Missions have constant access to the host country’s government. Whether it is exports or large-scale investments, missions can identify issues first and communicate with the home government. They inevitably play the vanguard role in exports. While coordinating overall bilateral and diplomatic relations, various economic projects emerge. These also become the ammunition of diplomacy. Managing this well to create synergy and concentrating energy when necessary is the role of overseas missions.

Observing Poland’s defense and nuclear power exports, I feel that because these are large-scale projects, cooperation in other fields can also be drawn out. Companies can secure contact points with high-level policy decision-makers of the host government and facilitate connections. The convening power of missions cannot be ignored. Large companies find it easier to enter based on scale, but SMEs find it difficult to take the first step. It is also difficult for large business delegations to visit. Therefore, last November, we held the 'Korea-Poland Defense Cooperation Conference' with 49 Polish companies and 20 Korean companies participating. Overseas missions can actively support individual companies and create an environment to promote exports.

- What image does Poland have of the Republic of Korea?

▲ Poland established diplomatic relations with Korea in 1989; next year marks the 35th anniversary. Just before that, in 1988, Poland first encountered Korea through the Seoul Olympics. Around the same time, Korean home appliances were imported into Poland. There is a positive image of Korea as a developed modern country. Also, the Korean Wave, including K-Pop, has created a good image. A clear example is the Korean studies departments established at Polish universities. Warsaw University, Jagiellonian University (Krakow), Wroclaw University, and Adam Mickiewicz University (Poznan) have about 150 students majoring in Korean studies and Korean language. In 2022, the competition rate was 10 to 1, showing high popularity.

- What is the public opinion in Poland regarding the move to strengthen national defense?

▲ Due to its circumstances, Poland has maintained the strongest stance in Europe on increasing defense spending. There is strong public support within Poland for increasing defense budgets. Poland’s perception is that "establishing security brings not only regional stability but also sustainable economic development." Therefore, the Polish government is expected to continue defense spending until defense capabilities reach a reassuring level. Poland’s economic growth rate in 2022 was 4.9% (Polish Central Statistical Office). The Polish Ministry of Finance expects 1.7% growth this year. The EU forecasts 2.5% growth for Poland in 2024. Poland still shows solid economic growth within Europe.

K-Defense Has Excellent Performance and High Price Competitiveness... Demand Will Grow

- Poland signed a large-scale comprehensive contract last year for four Korean weapons: K-2 tanks, K-9 self-propelled howitzers, FA-50 light combat aircraft, and Chunmoo multiple rocket launchers. What is the local reaction, and how much economic effect do you expect from this?

▲ This contract is mutually beneficial. First, the Korea-Poland consortium, which is the subject of the second implementation contract, is considering local production in Poland. Poland expects this consortium to ① strengthen the technological capabilities of Polish defense companies, ② activate employment through local production, ③ secure maintenance capabilities by establishing MRO facilities, and ④ promote export industrialization of the Polish defense industry through joint production and joint exports. There are many advantages for Korea. It strengthens the defense base by expanding defense companies’ sales, reduces production costs through economies of scale, and increases the possibility of reflecting the latest technology. Opportunities to enter the EU and NATO markets are also expected to expand.

- Poland decided to import Korean tanks through the next main tank selection project (Wilk program). Why do you think Korean tanks were selected over German and American tanks?

▲ First, our tanks are excellent. Delivery is fast, performance is good, and price competitiveness is high. Especially, the K2 tank has proven excellent performance through various tests conducted in extreme environments. When the Ukraine war broke out, Poland provided a significant amount of weapons immediately. There was a power gap, and filling that gap was important. Korea’s rapid provision of weapons was effective. Poland appreciates the Korean government’s swift decision and is expressing serious intentions for continuous development of Korea-Poland defense cooperation based on trust.

- Poland is supporting Ukraine with combat aircraft and other military assets. Do you think the support volume will increase further?

▲ Poland is an active pro-Ukraine weapons supporter. It is persuading other EU and NATO member states to expand support for Ukraine as well. Poland has supported Ukraine with about 2.2 billion euros worth of weapons until February this year. Recently, it is known to plan additional support of 14 Leopard tanks, 60 T-72 and T-91 tanks, and 28 MIG-29 fighter jets. In addition, various weapons and ammunition such as Piorun surface-to-air missiles, anti-tank weapons, and rifles are continuously being supplied.

Poland as a 'Hub' Will Play a Bridging Role in Ukraine Reconstruction Projects

- What projects will the Embassy of Korea in Poland focus on this year?

▲ Last year, defense, nuclear power, and infrastructure cooperation were promoted. We will focus on increasing high-level exchanges and deepening Korea-Poland relations. We are also focusing on building Korea-Poland cooperative relations for participation in Ukraine reconstruction projects. The reconstruction project scale is expected to reach about 600 to 700 billion euros. Poland is positioning itself as the hub for this project. There will be various ways for our companies to participate in Ukraine reconstruction projects. If done through partnerships with Polish companies, our companies can reduce costs and risks and leverage the strengths of both countries’ companies. Interest in Korea is also increasing. The Embassy of Korea in Poland has consistently emphasized expanding cultural exchanges with Poland. Next year marks the 35th anniversary of Korea-Poland diplomatic relations. Various cultural exchange events are being prepared.

- What should companies considering entry into Poland keep in mind?

▲ Poland is a Central European production base and a forward base for European market entry for Korean companies. More than 300 companies have already entered. Recently, cooperation in defense and nuclear power fields has been strong. Many Korean companies are expected to enter the Ukraine reconstruction projects that Poland is focusing on. SMEs need sufficient prior research and understanding of Poland’s economic environment and legal system. Poland is a large country. Detailed investigation and analysis of regional employment, wage levels, various incentives from central and local governments, logistics, land, and employment-related laws must precede. As Poland’s economy grows, advantages such as low wages and land prices that existed in the past are diminishing. Poland is an EU member. Foreign companies entering Poland must comply with all EU regulations. This must not be overlooked. Support for our companies’ investment and entry can be received from our embassy, KOTRA Warsaw Trade Center, and the Polish Investment and Trade Agency (PAIH) located in Korea.

This content was produced with the assistance of AI translation services.