A K2 tank from the Army's 8th Mobile Division is deployed in a military drill at a firing range in Pocheon, Gyeonggi Province, Jan. 2. Yonhap

Korea's Hyundai Rotem on Thursday dismissed reports suggesting it was in talks to take over the management of Romania's government-owned Steaua Bucharesti football club, amid ongoing discussions with the Romanian defense ministry over a potential battle tank deal.

The denial comes as Hyundai Rotem, a defense and railroad system affiliate of Hyundai Motor Group, is negotiating the export of its K2 Black Panther battle tanks to Romania. The company has been engaged in talks with the Romanian defense ministry since 2022, following the signing of a defense cooperation agreement.

As part of the negotiations, Hyundai Rotem delivered a K2 tank to Romania in March 2024 for live-fire testing. The company's proposal reportedly includes technology transfers and local industrial collaboration, as Romania seeks to modernize its armored vehicle fleet.

As discussions over Romania's potential purchase of hundreds of K2 tanks continue, Romanian media recently reported that the country's defense ministry was considering transferring management of Steaua Bucharesti to Hyundai Rotem as part of the defense deal.

The club, currently competing in Liga 2, Romania's second-tier football division, is ineligible for promotion to Liga 1 under its ministry-controlled structure, as league regulations prohibit state-owned teams from competing in the top division.

Romanian news outlet Gandul, citing defense sources, reported recently that the Romanian Army is expected to sign a contract this summer for military equipment produced by Hyundai Rotem.

The report said Romanian military officials had discussed the possibility of Hyundai Rotem financially supporting the football club, adding the team "could be taken over by one of the largest arms manufacturing companies in the world this summer."

Hyundai Rotem quickly dismissed the report.

"There have been no discussions whatsoever regarding the acquisition or management of any football team," a Hyundai Rotem official told Yonhap News Agency.

Steaua Bucharesti has yet to respond to a request for comment sent from Yonhap via email.

Despite the company's denial, speculation persists that the Romanian government is seeking an investor to take over the club's operations.

Observers note that the defense ministry has invested 94.7 million euros ($97.8 million) in Steaua Bucharesti's stadium, completed in 2020, and remains eager to see the team promoted to Liga 1.

This photo shows representatives of Hyundai Rotem and the Romanian defense ministry's handball team at a signing ceremony for the Korean company's sponsorship agreement for the handball team, captured from the Facebook page of Steaua Bucharesti, Feb. 23. Yonhap

While Hyundai Rotem has denied any involvement with Steaua Bucharesti, it has previously signed a sponsorship agreement with the Romanian defense ministry's handball team.

This may have fueled the speculation that the company could be considered a candidate for involvement with the football club, though no formal discussions have been confirmed.

Addressing the latest media reports, the Hyundai Rotem official stated, "There seems to have been some internal miscommunication within Romania."

Steaua Bucharesti was originally founded as the Romanian Army's football team in 1947. It was privatized in 2003 when businessman and football tycoon Gigi Becali took control. However, a lengthy legal dispute ensued, culminating in a Romanian court ruling in 2017 that the defense ministry retain ownership of the club's name and history.

This led to the reestablishment of a government-run Steaua Bucharesti, while Becali's team was renamed FCSB.

A Romanian defense industry observer, who requested anonymity, noted that for Steaua Bucharesti to compete in Liga 1, it would require private ownership.

"The team needs a private board to qualify for Liga 1, and a potential 'Hyundai Rotem Romania' — if the company were to establish a local tank production unit — could provide such an opportunity," he said. (Yonhap)