Hyundai Rotem to acquire Hyundai Wia’s defense unit for 358.4 billion won

Hyundai Rotem, a Hyundai Motor Group affiliate that manufactures the K2 battle tank, will acquire the defense business unit of fellow affiliate Hyundai Wia for 358.4 billion won ($252 million), as their parent Hyundai Motor Group seeks to strengthen its competitiveness by consolidating its defense operations. According to the two companies’ regulatory filings, Hyundai Rotem will acquire Hyundai Wia's defense business, which manufactures main gun barrels for battle tanks and self-propelled howitzers. The two sides signed the contract on Monday and plans to close the deal by March 31. Hyundai Rotem’s main businesses include railway vehicles, such as trains and trams, and weapons systems for land, naval and air operations. Hyundai Wia manufactures engines, modules and gun barrels, supplying the barrels for both Hyundai Rotem’s K2 battle tanks and K9 self-propelled howitzers produced by Hanwha Aerospace. The acquisition will allow Hyundai Rotem to manufacture both complete K2 battle tanks and their main guns, reducing manufacturing costs and improving supply chain management efficienc

Hyundai Rotem, a defense affiliate of Hyundai Motor Group, said Monday it will acquire Hyundai Wia's defense business for 358.4 billion won ($252 million) to strengthen its weapons production capabilities. Hyundai Rotem said in a regulatory filing that it plans to acquire Hyundai Wia's defense business, which manufactures key components for Korea's K9 self-propelled howitzers and K2 main battle tanks. The acquisition is expected to boost Hyundai Rotem's competitiveness in the global market by bringing more of its weapons production capabilities in-house, particularly for its flagship K2 tanks. In August 2025, the company signed a $6.5 billion follow-up contract to supply K2 tanks to Poland. Five months later, it reached a comprehensive agreement with Peru to supply 195 ground weapons systems, including 54 K2 tanks. For Hyundai Wia, the sale is part of broader restructuring efforts to shift its focus toward future mobility technologies, including vehicle electrification and software-defined vehicles (SDVs). The company plans to use the proceeds from the sale to invest in new growth areas,

SEOUL, Oct. 19 (Yonhap) -- Hyundai Rotem Co., a defense affiliate of Hyundai Mot...