South Korea made a strong push to sell submarines to Canada with Prime Minister Mark Carney visiting a shipyard to inspect one of the new vessels. South Korea’s Prime Minister Kim Min-seok joined Carney during the tour of the Hanwha Ocean Ltd. facility in Geoje, near the APEC summit venue. Carney also met South Korea’s President Lee Jae Myung earlier in the day.
Hanwha Ocean and Hyundai Heavy Industries have actively presented the KSS-III (Batch 2) submarine to Canada, submitting a detailed proposal to the government last winter. The submarine Carney viewed was recently launched for the South Korean navy and displayed a Canadian flag, emphasizing its appeal to Canada. Another submarine under construction nearby was adorned with Korean and Canadian banners.
The visit showcased South Korea’s production capabilities and commitment to delivering four submarines to Canada by 2035 as the navy plans to retire its aging Victoria-class boats. Defence Minister David McGuinty and Vice-Admiral Angus Topshee also participated in the tour, where Topshee praised the submarine’s features.
Carney, after the tour and meeting with company executives, did not provide comments. Hanwha Ocean executive Steve Jeong mentioned Carney’s interest and specific inquiries during the visit, indicating progress towards a decision possibly next year.
During his visit to Berlin, Carney narrowed down the submarine builder selection to Hanwha Ocean and ThyssenKrupp Marine Systems (TKMS) of Germany. The German bid’s timeline disadvantage compared to South Korea’s proposal was noted, with TKMS submarines expected later in the 2030s.
Canada’s Defence Investment Agency (DIA) will oversee the submarine replacement program, focusing on job creation. While the option of building submarines in Canada was raised by TKMS and Germany, McGuinty expressed preference for established manufacturers due to the complexity of setting up a submarine manufacturing site.
Topshee emphasized the urgency of acquiring submarines and the need for a decision. Both Korean and German submarines meet navy requirements, but the project awaits budget approval. McGuinty and Topshee highlighted Canada’s commitment to NATO defense spending targets.
The tour coincided with a report by the Parliamentary Budget Office on underspending in defense equipment procurement during previous years, raising concerns about future procurement capacity. The report did not assess the recent commitment to meet NATO defense spending targets.