Hyundai WIA agreed to sell its defense business to Hyundai Rotem for 358.386 billion won, seeking funds for mobility investment in a deal that would unite K2 tank and gun-barrel production.
The Hyundai Motor Group affiliates signed the cash agreement Oct. 19, but Hyundai WIA shareholders must approve the transfer. Hyundai Rotem builds the K2 tank, and the WIA unit makes its 120 mm gun barrel. The unit also produces 155 mm barrels for K9 self-propelled howitzers, naval guns and aircraft landing gear.
The defense business generated 393.1 billion won in revenue in 2025, representing 4.6% of Hyundai WIA’s total that year. The agreed purchase price may change to reflect adjustments to net assets before closing.
Hyundai WIA would keep the division’s land and buildings and rent them to Hyundai Rotem. The division’s business assets, liabilities and employees would move to the buyer under the proposed terms.
Hyundai Rotem said the purchase would support vertical integration and diversification of its defense business. Hyundai WIA said it plans to use the proceeds to invest in future mobility. If the transfer closes, the tank maker would control the WIA operation that produces the K2’s gun barrel.
Hyundai Rotem also announced an agreement April 28 with Poland’s BUMAR-ŁABĘDY covering local production and maintenance of K2PL tanks and recovery vehicles. The plan includes Polish components and participation by local personnel in maintenance work.
Hyundai WIA’s filing sets an expected purchase price of 51,811 won per share for eligible shareholders who oppose the transaction. Its board can withdraw the deal if their combined share-purchase claims exceed 140 billion won. Other closing conditions also apply.
Hyundai WIA shareholders are scheduled to vote Nov. 27. The companies list March 31, 2027, as the transfer deadline.
