South Korea demonstrated strong support for its ambitious initiative to offer submarines to Canada, as Prime Minister Mark Carney visited one of the country’s new boats and toured the shipyard responsible for construction. South Korea’s Prime Minister Kim Min-seok joined Carney during the visit to the Hanwha Ocean Ltd. facility in Geoje, located 96 kilometers from Gyeongju, where the Asia Pacific Cooperation (APEC) summit is taking place. Carney also had a meeting with South Korea’s new president, Lee Jae Myung, earlier in the day.
Hanwha Ocean and Hyundai Heavy Industries have been proactive in promoting the KSS-III (Batch 2) submarine to Canada, submitting a detailed proposal to the federal government last winter. The submarine Carney viewed was recently launched and built for the South Korean navy. In a bold move, it displayed a Canadian flag, while a nearby boat under construction featured Korean and Canadian banners.
The visit aimed to highlight Korea’s ability to meet the navy’s deadline of delivering four submarines to Canada by 2035, coinciding with the retirement of the aging Victoria-class boats. Defence Minister David McGuinty and Vice-Admiral Angus Topshee also participated in the tour. Topshee praised the submarine’s quality and design, emphasizing its impressive features.
Carney did not provide comments following the tour and discussions with the company’s executives. Hanwha Ocean executive Steve Jeong, a former vice-admiral in the Korean navy, mentioned Carney’s interest and positive impression during the visit.
The visit signals the government’s readiness to expedite the decision-making process, possibly reaching a conclusion next year. Carney had previously announced the shortlisting of two companies, Hanwha Ocean and ThyssenKrupp Marine Systems (TKMS) from Germany, for the submarine procurement. The German bid faces a delay with the first submarine delivery expected in 2032, later than the Korean proposal.
Canada’s Defence Investment Agency (DIA) will oversee the submarine replacement program. The agency’s cabinet secretary, Stephen Fuhr, highlighted the importance of generating Canadian jobs in the submarine contract decision. While Canadian shipyards lack submarine construction capabilities, the possibility of building some boats in Canada was raised by TKMS and German officials.
McGuinty expressed skepticism about local manufacturing, emphasizing the ongoing procurement with established foreign manufacturers. Topshee stressed the urgency of acquiring the submarines without delay. Both the Korean and German proposals meet the navy’s requirements, but the project’s budget and funding timeline remain under review.
The tour coincided with a report from the Parliamentary Budget Office revealing underspending on defense equipment by the government over several years. The report raised concerns about Canada reaching the NATO defense spending target of five percent of GDP. Despite the commitment to increase defense spending, the report questioned the government’s ability to manage higher procurement volumes effectively.