South Korea’s National Assembly Speaker visited Zagreb this week to build on a landmark arms export deal that made Croatia the newest European buyer of a Korean-made rocket system.
What happened
National Assembly Speaker Cho Jeong-sik met Croatian President Zoran Milanovic, Parliament Speaker Gordan Jandrokovic, and Prime Minister Andrej Plenkovic in Zagreb on October 10, 2026, during a nine-day, four-nation tour covering Italy, Vatican City, Croatia, and Greece. The meetings followed a deal signed last month in which Hanwha Aerospace — a major Korean defense conglomerate — agreed to export 18 Chunmoo (천무, Korea’s domestically developed multiple launch rocket system, or MLRS) units to Croatia. The contract is valued at approximately 640 billion won (roughly US$477 million), the first major arms transaction between the two countries. South Korea and Croatia established diplomatic ties in 1992 and upgraded their relationship to a “comprehensive, future-oriented partnership” in 2023.
Why Korea does it this way
South Korea has aggressively expanded defense exports since the early 2020s, leveraging competitive pricing, rapid delivery timelines, and combat-tested systems to break into markets that have historically favored US or European suppliers. The Chunmoo system — with an operational range of up to 80 kilometers and the ability to execute both precision strikes and wide-area cluster attacks — proved attractive to NATO-adjacent nations shoring up conventional deterrence after Russia’s invasion of Ukraine. Croatia becomes the fourth European country to buy the Chunmoo, after Poland, Estonia, and Norway, embedding Korean hardware into a growing European logistics and maintenance network. Parliamentary diplomacy of this kind is standard Korean practice for opening follow-on industrial and logistics cooperation beyond the initial arms sale.
What it means for you
Investors in Korean defense equities: Hanwha Aerospace (Korea Stock Exchange: 012450) is the contract holder. The 640 billion won deal adds a confirmed backlog line item; check the current share price and forward order-book disclosures at the Korea Exchange (krx.co.kr) — this brief does not constitute investment advice. Defense-sector ETFs tracking Korean industrials will carry some exposure.
Defense supply chain: The deal covers 18 launcher units; follow-on contracts for ammunition, spare parts, and maintenance support — referenced explicitly by Speaker Cho — would represent additional revenue streams for Hanwha and Korean sub-suppliers. No figures for follow-on contracts have been announced yet.
Foreign residents and workers: This deal does not directly affect domestic prices, taxes, or employment in Korea in ways announced so far, but defense-sector job growth in Changwon (Hanwha’s main manufacturing hub) tends to follow large export wins.
Politics → policy → money: Speaker Cho’s office framing the trip around “economy, culture, defense and energy” suggests energy cooperation agreements may follow; no terms or figures have been disclosed yet.
Watch next
- Hanwha Aerospace’s next quarterly earnings disclosure (check the DART financial reporting system at dart.fss.or.kr for the scheduled release date) — look for the Croatia contract to appear in the official backlog and any guidance on follow-on maintenance/logistics deals.
- A formal energy cooperation announcement between Seoul and Zagreb: Speaker Cho’s office raised the topic in the October 10 meetings but no agreement was signed — watch for a joint statement with a specific project or MOU (memorandum of understanding) attached, date not yet set.
- Fifth European Chunmoo buyer: if another NATO or NATO-adjacent country signs a deal, it signals the system has crossed a critical-mass threshold for European interoperability — track Korean Defense Acquisition Program Administration (DAPA) announcements at dapa.go.kr.
FAQ
What is the Chunmoo rocket system and why is Croatia buying it?
The Chunmoo is South Korea’s domestically developed multiple launch rocket system (MLRS) with a range of up to 80 kilometers, capable of precision strikes and wide-area attacks. Croatia signed a deal worth approximately 640 billion won (US$477 million) for 18 units last month, making it the fourth European country to acquire the system after Poland, Estonia, and Norway.
How much is the South Korea–Croatia arms deal worth?
The contract signed last month between Hanwha Aerospace and Croatia is valued at approximately 640 billion won, equivalent to roughly US$477 million, covering 18 Chunmoo MLRS units; follow-on figures for ammunition or maintenance have not been announced.
Source: Yonhap News Agency
Was this useful?
What made the difference? Pick one.
What made the difference? Pick one.
Thanks. We read every answer.
