Eximbank appears to be not participating in the K-self-propelled gun “Egyptian production loan contract” between Egypt and the Korean Defense Agency, which was signed with the Eximbank’s arms loan.
Regarding the K9 'Thunder' introduced in Egypt on the 2nd, Defense News said, "The first batch of K9 self-propelled howitzers will be delivered by Hanwha Defense, and most of the remaining 200 armored vehicles and armored vehicles will be locally produced at Factory 200, a state-owned weapons factory in Cairo, Egypt." “Dozens of K10 ammunition carriers are also locally produced in Egypt,” it was reported.
On the 2nd, SBS said, citing a 'government official', "(The Egyptian government) will get a loan from the Export-Import Bank (import) and do some of it with their own cash. (Amount) According to the rules of the Export-Import Bank of Korea, up to 80 (about %.)” He said, “We cannot disclose detailed loan conditions such as repayment terms and interest rates,” and pointed out 80% of the 2 trillion won loan.
Yonhap News reported that the Defense Acquisition Program Administration finally signed the K-9 self-propelled artillery export contract at the local artillery center on the 1st (local time) by the Defense Acquisition Program Administration in the presence of the Egyptian Ministry of National Defense and key officials from both countries. Some of the government delegation remained in the country to continue negotiations, and the Egyptian side accepted the final proposal proposed by the Korean side without further concessions, and the negotiations were concluded dramatically,” he explained. It is more than 2 trillion won, which is about twice the amount of exports (about 1 trillion won).”
The Hankyoreh reported on the 5th with the title of “There is no reason for controversy over ‘K9 purchase price loaned to Egypt’ under the title, “Korea’s defense exports mainly target countries in Asia, the Middle East, and Central and South America. Countries with low credit ratings demand long-term, low-interest financing for large-scale defense transactions worth US$500 million or more. Of course, they want local production and so-called compromise trade (requirement for conditions such as technology transfer and reverse export of parts),” he said.
Following Defense News, the Egyptian army operated 745 U.S.-made 155mm self-propelled guns, including 201 M109 A5 (maximum range 30km), 420 M109 A2 (maximum range 24km), and 124 SPH guns mounted with a 122mm caliber main gun on the chassis of the M109 A2. reported that they are doing
On the 4th, Park Soo-hyeon, senior communication officer, in the K9 export contract, said, "It's about revealing trade secrets, but is this an act of patriotism? Rather, it is an act of patriotism."
Park said on Facebook on the 2nd, "The president's 'empty-handed strategy' to endure criticism of 'empty-handed return' was effective.
During the negotiation process, President Moon Jae-in said, “The government’s role in exporting this (defense project) is getting bigger and bigger. In addition to financial support, it is diversified and complicated, so it is necessary to support companies at the pan-ministerial level. It is difficult if the president does not have a strong will to encourage the government as it includes ministries that are not directly related to exports.”
Egyptian military expert Mahmoud Gamal tweeted on November 30 last year, "Egypt and South Korea will soon begin joint production of the K9 self-propelled howitzer at the Egyptian factory, and Egypt will supply 50% of the K9 self-propelled howitzer and ammunition to local production within 5 years. It will be produced in ”, confirming the gap with 'export' by agreeing to 'local production' in 'co-production'.
He continued, "The Egyptian government announced that it was negotiating the local production and technology transfer of the K2 Black Panther at 'EDEX 2021', an exhibition for defense equipment parts. It appears to be a long-term, low-interest loan of 1.6 trillion won to Korea.
The main gun of the K self-propelled gun is 155 mm 52 caliber, and the American self-propelled guns M109 A5 and M109 A2 also have the same 155 mm.
President Moon's visit to the Middle East seems to be an official briefing in guarantee for unguaranteed local loans as trade finance, but information for the control press by his staff to pack.