The Defense Acquisition Program Administration said on the 10th that a signing ceremony for the export of the Chunmoo multiple rocket system had been held in Zagreb between Hanwha Aerospace and the Croatian defence ministry. The contract covers eighteen units, with an order value of about 640 billion won, or some 410 million euros.

It is the first large defence-industrial agreement between South Korea and Croatia. Croatia becomes the fourth European country to adopt the Chunmoo, after Poland, Estonia and Norway.

The Chunmoo is a multiple rocket system whose range and munition type can be varied in use, supplied as a package of launcher vehicles, ammunition carriers and command and fire-control equipment. European buyers have generally adopted it as a replacement for older systems.

Croatia sits in the Balkans and belongs to both the European Union and the North Atlantic Treaty Organisation, and the contract is read as extending Korean defence exports beyond central and eastern Europe into the region.

Such contracts customarily include training and follow-on logistical support alongside the equipment itself. Delivery schedules and arrangements for local maintenance are expected to be settled in later negotiations.

Korean defence exports have grown over recent years, concentrated in Europe and the Middle East. There is, however, a lag between order value and recognised revenue, depending on delivery timing and local requirements.

Industry observers point to further European orders as one prospect, and to the growing insistence on local production and technology transfer as the next question to answer.