Key facts
- South Korea and Germany are competing for Canada's submarine project, valued at up to US$39.14 billion.
- The Canadian Patrol Submarine Project involves replacing the Royal Canadian Navy's four Victoria-class submarines with 12 new 3,000-tonne diesel-electric vessels.
- South Korean President Lee Jae Myung engaged in diplomatic efforts to support the bid led by Hanwha Ocean.
- Hanwha Ocean's bid features the KSS-III class submarine, which is already operated by the South Korean Navy.
- The German competitor is TKMS, offering a paper design.
- The contract includes long-term maintenance, repair, and overhaul services.
South Korea and Germany are engaged in a high-stakes competition for a lucrative Canadian submarine contract, estimated to be worth up to US$39.14 billion (60 trillion won). The Canadian Patrol Submarine Project aims to replace the Royal Canadian Navy's aging fleet of four Victoria-class submarines with 12 new 3,000-tonne diesel-electric vessels, including a comprehensive maintenance and repair package.
Seoul has escalated its bid through top-tier diplomatic channels, with President Lee Jae Myung recently offering critical support during a bilateral summit with Canadian Prime Minister Mark Carney on the sidelines of the G7 summit. Despite this diplomatic push, President Lee acknowledged the outcome remains uncertain.
The South Korean consortium, led by Hanwha Ocean, is proposing the Dosan Ahn Chang-ho, a KSS-III class submarine built by its predecessor Daewoo Shipbuilding & Marine Engineering. A key selling point for Hanwha Ocean's bid is the submarine's proven operational status with the South Korean Navy, in contrast to TKMS's paper design. Hanwha Ocean has proposed delivering the first four submarines by 2035 and completing the entire order of 12 by 2043.
Moon Keun-sik, a professor at Hanyang University and former South Korean submarine captain, believes that South Korea may hold a slight technological advantage due to the KSS-III's active deployment.