South Korea sends delegation for Canada submarine bid

A South Korean presidential delegation led by Chief of Staff Kang Hoon-sik has departed for Canada as part of an effort to secure a next-generation submarine contract valued at up to 60 trillion won. Kim Dong-kwan, vice chairman of Hanwha Group, which is bidding for the project, and Chung Eui-sun, chairman of Hyundai Motor Group, are also expected to join the push locally to bolster South Korea’s bid.

According to multiple government officials on Jan. 26, the defense industry delegation includes Kang, Industry Minister Kim Jeong-kwan and Defense Acquisition Program Administration chief Lee Yong-cheol. The group is scheduled to meet several senior Canadian officials, including the ministers of industry and defense and a minister of state. A meeting with Prime Minister Mark Carney, however, was not arranged. One official said Carney plans to avoid meetings with both the German and South Korean delegations.

The Canadian submarine program is a large-scale effort to replace the Victoria-class fleet, which is slated for retirement in the mid-2030s. A Team Korea consortium led by Hanwha Ocean and HD Hyundai Heavy Industries, along with Germany’s Thyssenkrupp Marine Systems, has advanced to the final shortlist. After final proposals are submitted in March, a preferred bidder is expected to be selected in the first half of the year.

South Korea was initially regarded as a strong contender, but that assessment shifted after Germany recently proposed an offset package that includes the construction of a battery plant by Volkswagen Group. Earlier, Canadian Minister of State for Defense Procurement Stephen Fuhr said military requirements had already been met and that South Korea and Germany would compete over which country could offer greater economic benefits to Canada. Chung’s decision to join the delegation is widely interpreted as an effort to highlight South Korea’s willingness to deepen broader economic cooperation with Canada.

Speaking to reporters at Incheon International Airport, Kang described Germany as a manufacturing powerhouse and noted that it had previously shared submarine development technology with South Korea, underscoring the difficulty of the competition. He added that securing the contract could generate work for more than 300 partner companies and create more than 20,000 jobs.


Won-Joo Lee takeoff@donga.com