Team Korea heads for Canada for final push in $41 bn submarine bid

SEOUL, January 26 (AJP) - President Lee Jae Myung’s chief of staff Kang Hoon-sik departed for Canada on Monday as a special envoy for strategic economic cooperation, seeking to support South Korea’s bid to secure Canada’s major submarine procurement project estimated at up to 60 trillion won ($40.9 billion).

Kang left Incheon International Airport for Toronto as South Korean shipbuilder Hanwha Ocean competes for Canada’s Canadian Patrol Submarine Project (CPSP), after being shortlisted as one of the final two contenders alongside Germany’s Thyssenkrupp Marine Systems (TKMS).

“The bidders for the Canadian submarine project have now been narrowed down to Korea and Germany,” Kang told reporters before departure. “During this visit, we will meet senior Canadian officials to explain the advanced capabilities of Korean submarines and convey the Korean government’s commitment to expanding security and industrial cooperation between the two countries.” 

Kang is accompanied by Industry Minister Kim Jung-kwan and Defense Acquisition Program Administration (DAPA) Commissioner Lee Yong-chul, along with senior executives from Hanwha Ocean, Hyundai Motor Group and HD Hyundai.

The CPSP involves the acquisition of up to 12 conventionally powered submarines of around 3,000 tons, along with long-term maintenance, repair and overhaul services, making it one of the largest submarine procurement programs currently under way. 

Kang stressed the need for pan-government support for the bid, noting that South Korea faces strong competition from Germany, a global manufacturing powerhouse and a country that previously transferred submarine technologies to South Korea. 

“Large-scale defense projects of this nature cannot be pursued by individual companies alone,” Kang said. “We will directly deliver the Korean government’s commitment to broadening industrial and security cooperation with Canada.” 

Following his Canada visit, Kang will travel to Norway to discuss expanding defense cooperation. It will mark his second trip to Norway after an earlier visit in October, when he delivered a personal letter from President Lee. 

In Norway, Hanwha Aerospace is seeking to secure a major long-range rocket procurement project with its K239 Chunmoo multiple rocket launcher system. Kang said a decision on the Norwegian deal is expected “in the near future.” 

Kang added that the government is also preparing to expand defense cooperation with Saudi Arabia, the United Arab Emirates, Indonesia and Peru. 

Kang was appointed as President Lee’s special envoy for strategic economic cooperation in October, as part of the administration’s goal to position South Korea among the world’s top four arms exporters.