(C) KOTRA

The South Korean multiple launch rocket system (MLRS), 'Chunmoo,' is being exported to the Baltic nation of Estonia for the first time, establishing a strategic foothold in the Northern European defense market.

On December 21, at the Estonian War Museum in Tallinn, the Korea Trade-Investment Promotion Agency (KOTRA, President Kang Kyung-sung) signed a government-to-government (G2G) export contract with the Estonian Centre for Defence Investments (ECDI)—the defense procurement arm under the Estonian Ministry of Defence—for the supply of the Chunmoo MLRS. This contract is the culmination of continuous consultations between the two governments to strengthen defense cooperation, with KOTRA participating as the contracting party representing the South Korean government.

Under this agreement, the South Korean company Hanwha Aerospace will supply six Chunmoo launchers and three types of missiles, totaling 300 million euros (approximately KRW 500 billion), to Estonia over the next three years. Notably, KOTRA also signed a 'Framework Arrangement' for long-term supply over 10 years, establishing a structured and sustainable foundation for future exports.

The Estonian Chunmoo contract marks the second export achievement in Europe, following Poland, and the first among the Baltic states. Under its 'National Defence Development Plan 2026-2029 (KMAK),' the Estonian government plans to invest over 10 billion euros in strengthening defense capabilities over the next four years. Consequently, this G2G contract is expected to provide a favorable advantage for securing follow-up orders for future Estonian defense projects.

A Government-to-Government (G2G) contract is a method in which KOTRA acts as the contracting party—either on behalf of or alongside domestic companies—at the request of a foreign government to export goods and services. KOTRA supports the entire process, including contract drafting, negotiations, legal reviews, and communication with the purchasing government, thereby reducing contract risks for exporting companies and ensuring negotiations proceed through transparent procedures. Furthermore, the G2G method offers the advantage of securing more favorable conditions for South Korean companies, such as lower performance bonds and liquidated damages compared to private business-to-business contracts.

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