South Korea showcased its push to sell submarines to Canada with a visit from Prime Minister Mark Carney to a shipyard in Geoje, accompanied by South Korea Prime Minister Kim Min-seok. The Hanwha Ocean Ltd. facility is actively constructing the KSS-III (Batch 2) submarines that South Korea is offering to Canada. The tour highlighted the capability of the Korean production lines to deliver four submarines to Canada by 2035, aligning with the Canadian navy’s plan to retire its aging Victoria-class boats.
During the visit, Carney and other officials, including Defence Minister David McGuinty and Vice-Admiral Angus Topshee, inspected the submarines under construction. The Koreans strategically displayed a Canadian flag on one submarine, emphasizing their readiness to meet Canada’s submarine needs.
Hanwha Ocean and its partner Hyundai Heavy Industries have been proactive in pitching their submarine proposal to Canada, competing with ThyssenKrupp Marine Systems (TKMS) of Germany. While the German bid faces potential delays in delivery, the Canadian government is evaluating factors like job creation and budget considerations in its decision-making process.
Both the Korean and German submarines meet the navy’s requirements, but the project’s budget and timeline are still being finalized. The Canadian government aims to increase defence spending to meet NATO targets, emphasizing the importance of efficient procurement and industry support.
The visit coincided with a report from the Parliamentary Budget Office highlighting underspending on defence equipment by the Trudeau government. While the report did not assess recent commitments to increase defence spending, it raised concerns about the government’s capacity to manage higher procurement volumes and industry readiness.
The submarine procurement decision is expected soon, with both South Korea and Germany vying for the contract to supply Canada with modern submarines.
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