[Exclusive] Consulting firm hired by Hyundai Rotem under investigation in Poland

Korea Herald

17 hours ago

Hyundai Rotem confirmed Friday that it had signed a consulting contract with a Polish firm that is currently under investigation by local authorities for alleged invoice falsification. The company stressed that the agreement complied with the law and followed standard international defense export practices, indicating no involvement in the probe.
The company's statement followed an Aug. 8 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 consulting firm is suspected of issuing potentially fraudulent invoices related to weapons procurement contracts signed between South Korea and Poland.
Citing Polish government data, the report said the company was established in 2019 by two Korean nationals. While no charges have been filed, investigators are looking into possible illegalities in the flow of funds from the firm to possible third-party recipients, it added.
Mariusz Blaszczak was Poland's defense minister when the first K2 tank deal was signed in 2022. Reports have suggested that the ongoing investigation may be politically motivated, potentially targeting Blaszczak.
The ongoing investigation centers on whether two multimillion-zloty invoices issued by the consulting firm contained false statements that could affect public debt assessments — a violation that carries a maximum sentence of 25 years in prison under Polish criminal law.
The report did not name specific Korean companies that the consulting company had worked with. However, it listed arms imported by Korean companies such as K2 Black Panther tanks, K9 self-propelled howitzers and FA-50 fighter jets.
Meanwhile, an industry source in Seoul told The Korea Herald on Friday that among the three — K2 maker Hyundai Rotem, K9 self-propelled howitzer manufacturer Hanwha Aerospace and FA-50 fighter jet producer Korea Aerospace Industries — Hyundai Rotem was the only company confirmed to have used a local agent in Poland.
When asked by The Korea Herald, Hyundai Rotem acknowledged that it had signed the contract to support its 2022 K2 tank exports to Poland.
'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,' a Hyundai Rotem spokesperson told 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 DAPA 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 — not by the agent itself or Hyundai Rotem.
DAPA also confirmed that Hyundai Rotem had formally contracted the local firm, and said the scope of services and fee structure were consistent with anti-corruption guidelines.
'Using a local agent is legal under Polish regulations, provided strict transparency and oversight requirements are met,' a DAPA official told The Korea Herald on Friday.
Hyundai Rotem described the Polish contractor as a general trading company that provided legal and cultural support essential for overseas military exports.
The company added that it had also worked with another local agent for a recent contract in Peru, where it similarly lacked a local network. Romania is also reportedly being considered as the company's next partner country, where it currently has no established local presence.
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. In 2022, the company signed a deal to export 180 K2 tanks to Poland worth approximately 4.5 trillion won ($3.24 billion).
More recently, on Aug. 1, South Korea and Poland signed an additional agreement for more K2 tanks, in a ceremony attended by South Korean Defense Minister Ahn Gyu-baek and Polish Deputy Prime Minister and Defense Minister Wladyslaw Kosiniak-Kamysz.
The event followed a contract previously signed by Hyundai Rotem CEO Lee Yong-bae and Polish Armament Agency head Artur Kuptel, according to South Korea's Defense Ministry.
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.
According to the Korea International Trade Association, Poland's imports of Korean defense equipment — including K2 tanks, FA-50 jets and K9 howitzers — amounted to approximately 19.4 trillion won in 2022.
Hyundai Rotem has been among the main beneficiaries, with its stock price on the benchmark Kospi rising from 17,650 won in January 2022 to a peak of 225,500 won in June 2025, before settling around 179,900 won.