South Korea Seeks Canadian Support for Submarine Project Against Germany
South Korea is actively seeking Canadian support for its submarine project, which could reshape regional defense dynamics. A delegation led by Kang Hoon-sik, the presidential chief of staff, is heading to Canada alongside key executives from Hyundai Motor, Hanwha, and HD Hyundai. Their goal is to secure a significant contract for developing a fleet of diesel-powered submarines.
Submarine Project Overview
The project involves the construction of up to 12 submarines valued at over $12 billion USD. This competitive bid pits South Korea against Germany’s TKMS, emphasizing the necessity for a robust presentation of South Korea’s submarine capabilities.
Economic Impact and Job Creation
- Estimated economic benefit: over 40 trillion won (approximately $27.62 billion USD)
- Projected job creation: 20,000 positions
Kang expressed concerns regarding the strong manufacturing presence of Germany, stating, “The prospects are not necessarily easy.” He is optimistic that the visit will showcase the high-quality performance of South Korean submarines and the commitment to enhancing industrial and security cooperation between the two nations.
High-Level Delegation
South Korean President Lee Jae Myung aims to establish the country as the world’s fourth-largest defense industry amid ongoing tensions with North Korea. Euisun Chung, Executive Chair of Hyundai Motor Group, is also part of the delegation, focusing on potential local cooperation in various sectors.
In discussions, Chung may address Canada’s interest in the establishment of a local car plant, although Hyundai has stated that there are no current plans for such a factory in Canada. The company is reviewing potential collaborations, particularly in hydrogen technology, leveraging Canada’s strengths.
Strategic Discussions in Canada
Following the delegation’s arrival, business leaders from South Korea and Canada will participate in bilateral meetings aiming to strengthen cooperation in submarine construction, battery technology, and other strategic industries.
Competition from Germany
Meanwhile, TKMS is exploring partnerships with Norwegian and German firms to propose a multibillion-dollar investment package to enhance its bid. These developments reflect the competitive landscape surrounding Canada’s efforts to modernize its naval capabilities.
Canada, as a founding NATO member, aims to update its aging submarine fleet to maintain strategic advantages in underwater surveillance and deterrence. This initiative comes in light of the need to replace its outdated four-vessel fleet from the 1990s.
