South Korean Delegation Visits Canada to Advance Submarine Project, Competes with Germany
In a significant move to strengthen defense ties, a South Korean delegation has arrived in Canada to advance their submarine project. This initiative aims to secure a contract for a new fleet of diesel-powered submarines.
South Korea Competes for Submarine Contract in Canada
South Korea’s presidential chief of staff, Kang Hoon-sik, is leading the mission, accompanied by executives from Hyundai Motor and shipbuilders Hanwha and HD Hyundai. They are vying for a contract with an estimated value exceeding $12 billion. The nation is competing against Germany’s TKMS for this project.
Economic Significance of the Submarine Project
- The submarine project represents one of South Korea’s most consequential defense procurement initiatives.
- It is projected to generate over 40 trillion won (approximately $27.62 billion) for the economy.
- Job creation is estimated at around 20,000 positions due to this contract.
Kang expressed optimism about showcasing the capabilities of South Korean submarines while emphasizing the government’s commitment to enhancing industrial and security cooperation with Canada.
South Korean Delegation Leadership
Joining Kang in Canada is Hyundai Motor Group’s Executive Chair, Euisun Chung. He aims to promote collaboration between South Korea and Canada beyond just the submarine project. Discussions may include potential partnerships in the hydrogen sector.
Canadian officials have expressed interest in localizing operations, including the establishment of a Hyundai car plant. However, Hyundai has clarified that there are no current plans for such a facility in Canada.
Future Meetings and Strategic Collaborations
Scheduled meetings are set to focus on cooperation in submarines and batteries, along with other strategic industries. South Korea’s business association highlighted the importance of this dialogue.
Meanwhile, TKMS has announced talks with Norwegian and German firms to propose a substantial investment package to Canada, enhancing their bid for the submarine project.
Canada’s Defense Modernization Goals
Canada, a founding NATO member, is modernizing its defense capabilities. With the world’s longest coastline, including Arctic regions, it plans to replace its aging fleet of four submarines from the 1990s to maintain an effective underwater surveillance and deterrence strategy.
