Polish consulting firm under investigation over K2 Black Panther dealings
Hyundai Rotem, a subsidiary of Hyundai, has disclosed that a Polish consulting firm it worked with is under investigation by local authorities for alleged invoice falsification.
The statement by Hyundai follows an August report by Polish broadcaster Tvn24, which said prosecutors, tax officials and counterintelligence authorities are investigating a Warsaw-based consulting firm that received nearly 100 million zloty ($27.3 million) from a South Korean arms manufacturer between 2022 and 2023. The report was released without the name of the consulting company or which South Korean arms exporter had signed the contract.
The Polish consulting firm is suspected of issuing potentially fraudulent invoices related to weapons procurement contracts signed between South Korea and Poland. While no charges have yet been made, investigators are looking into possible illegalities in the flow of funds from the firm to possible third-party recipients.
Hyundai Rotem is a South Korean manufacturer of railway rolling stock, plant equipment and defense products. The company’s defence products are used in more than 30 countries worldwide.
In Poland, Hyundai Rotem signed its first K2 tank deal in 2022. “It was our first export contract with Poland, and as is customary in overseas defense deals, we worked with a local agent familiar with on-the-ground conditions,” said a Hyundai Rotem spokesperson in discussion with The Korea Herald.
The company’s spokesperson added that the deal was reviewed and cleared by both the Polish Armament Agency and South Korea’s Defense Acquisition Program Administration.
“There are no legal issues with our transactions. Both the Korean authorities and the Polish Armament Agency have confirmed this,” the spokesperson said, adding that the invoices under investigation appear to have been issued by subcontractors of the consulting firm.”
Meanwhile, Hyundai Rotem also noted that while the 100 million zloty payment may appear sizable, it accounted for just 0.0084 percent of the overall contract value. The 2022 contract was for 180 K2 tanks worth approximately 4.5 trillion won ($3.24 billion).
Since Russia’s invasion of Ukraine in 2022, Poland has sharply increased its defense spending, emerging as one of the largest buyers of South Korean arms.
