South Korea made a significant push to sell submarines to Canada, with Prime Minister Mark Carney visiting a shipyard to inspect one of the newly built boats. Accompanied by South Korea Prime Minister Kim Min-seok, Carney toured the Hanwha Ocean Ltd. facility in Geoje, where the Asia Pacific Cooperation (APEC) summit is taking place. Hanwha Ocean and Hyundai Heavy Industries have actively promoted the KSS-III (Batch 2) submarine to Canada, presenting a detailed proposal to the government last winter.
During the visit, a recently launched South Korean navy submarine, intended for Canada, proudly displayed a Canadian flag. The Koreans showcased their production capabilities by exhibiting a boat under construction, emphasizing their commitment to delivering four submarines to Canada by 2035, aligning with the navy’s retirement timeline for the aging Victoria-class boats.
The tour, attended by Defence Minister David McGuinty and Vice-Admiral Angus Topshee, impressed the officials, with Topshee commending the submarine’s design and features. The visit hinted at the government’s readiness to make a prompt decision, possibly next year.
Carney previously mentioned that Hanwha Ocean and ThyssenKrupp Marine Systems (TKMS) of Germany were the final contenders for the submarine contract. While Germany’s bid faces delays in delivery, Canada’s Defence Investment Agency (DIA) will oversee the submarine replacement program.
Both bidders meet the navy’s requirements, but the final decision will prioritize job creation. Despite discussions on potential Canadian involvement in submarine production, officials emphasized the urgency of acquiring the submarines without domestic manufacturing.
The submarine replacement project lacks a confirmed budget, with ongoing discussions on funding aligning with Canada’s defense spending commitments. The recent Parliamentary Budget Office report highlighted underspending on defense equipment, raising concerns about meeting the NATO defense spending target.
The report questions the government’s capacity to manage increased procurement activity and the domestic defense industry’s ability to support higher defense spending levels. The focus remains on selecting the submarine bidder that best serves Canada’s strategic and economic interests.
