US$1.9 billion contract highlights Korea’s growing role in Europe’s defense modernization
Hanwha Aerospace has secured a major defense contract in Norway, winning a project valued at around US$1.9 billion to supply long-range rocket systems, according to industry sources. The deal centers on the export of the company’s K239 Chunmoo, marking one of South Korea’s largest defense exports to Europe to date.
People familiar with the matter said the formal contract is expected to be signed on Friday in Oslo between Hanwha Aerospace and the Norwegian Defence Materiel Agency. The information was shared with Yonhap News Agency by sources who requested anonymity, as the agreement has not yet been officially announced.
The signing ceremony is expected to be attended by Kang Hoon-sik, signaling strong government-level support for the deal. Kang’s presence would underscore how closely Seoul is linking defense exports with senior diplomatic engagement.
Kang is currently visiting Canada as part of an overseas trip widely seen as aimed at promoting South Korea’s defense industry. Ahead of his departure from Seoul earlier this week, he said he would also travel to Norway to explore ways to expand bilateral defense cooperation.
“We will discuss measures to further strengthen defense collaboration,” Kang said before leaving Seoul, pointing to the government’s intent to support Korean firms abroad through diplomacy.
Why Norway chose Chunmoo
Norway’s decision to move forward with the Chunmoo system comes as it seeks to enhance long-range precision strike capabilities amid heightened security concerns across Europe. The system is designed to provide flexible, high-accuracy firepower and is seen as a key element in modernizing artillery and rocket forces.
Defense analysts note that the selection reflects a broader trend among European countries to diversify suppliers while prioritizing proven systems that can be integrated quickly into existing military structures.
Offset rules shape the deal
The agreement is expected to include an offset requirement, a standard feature of Norway’s defense procurement policy. Under these rules, foreign suppliers must provide industrial cooperation equal to 100 percent of the contract value for large projects.
For defense projects worth more than 50 million Norwegian kroner (around US$5.2 million), foreign suppliers are typically required to match the contract value through industrial cooperation. This usually includes:
- Sharing technology or technical expertise
- Participating in joint development or manufacturing activities
- Forming partnerships with Norwegian defense and industrial firms
These requirements are intended to strengthen Norway’s domestic industry while enabling access to advanced military systems.
Part of a broader European push
The Norwegian contract builds on Hanwha Aerospace’s earlier success in the country, including a previous agreement to supply K9 Vidar systems. Together, these deals highlight the company’s expanding footprint in the Nordic region.
Industry observers say the latest agreement demonstrates Hanwha’s ability to meet Europe’s strict operational, regulatory, and industrial standards—an increasingly important factor as European governments reassess defense readiness and supply chains.
More broadly, the deal reflects South Korea’s growing role as a defense supplier in Europe, where rising security pressures are accelerating procurement decisions and opening the door to non-traditional partners.
