Ottawa/Seoul (Rajeev Sharma): South Korea has intensified its efforts to secure a major Canadian submarine procurement project, with Presidential Chief of Staff Kang Hoon-sik leading a high-level delegation to Canada along with senior executives from Hyundai Motor, Hanwha Group and HD Hyundai Heavy Industries.
Kang said the visit aims to strengthen South Korea’s bid for the Canadian Navy’s new submarine fleet, a project believed to be worth around 40 trillion won (approximately US$27.65 billion). South Korea is competing against Germany’s ThyssenKrupp Marine Systems (TKMS) for the contract, which industry sources estimate to be valued at more than US$12 billion.
Speaking to reporters before departing for Canada with Industry Minister Kim Jung-kwan, Kang acknowledged the challenge posed by Germany. He said competition against a global manufacturing powerhouse like Germany would not be easy, but expressed confidence in South Korea’s capabilities.
Kang said the delegation intends to directly highlight the advanced performance of South Korean submarines, while also underlining the government’s commitment to expanding industrial and security cooperation with Canada. He added that the submarine deal would be among the largest defence procurement projects currently underway and could generate significant economic benefits for South Korea.
According to Kang, the project could result in economic gains exceeding 40 trillion won and lead to the creation of nearly 20,000 jobs in South Korea if secured.
Meanwhile, Germany’s TKMS has also stepped up its campaign. Last week, TKMS Chief Executive Officer Oliver Burkhard told Reuters that the company is in talks with German and Norwegian firms to offer a multi-billion-dollar investment package to Canada as part of its bid for the submarine contract.
Hanwha Group, one of the South Korean firms involved in the delegation, said it plans to create a large number of jobs in Canada by 2040 through cooperation in various sectors, including submarine construction, if its proposal is successful.
