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South Korea eyes massive Canadian submarine deal
26 Jan
Summary
- South Korea and Germany are finalists for Canada's submarine contract.
- The deal is valued between C$20 billion to C$24 billion.
- Canada's submarine procurement emphasizes industrial cooperation.
South Korea is making a strong bid for Canada's major submarine contract, with a high-level delegation visiting to emphasize bilateral industrial cooperation. The competition has narrowed to South Korea and Germany's Thyssenkrupp Marine Systems. This potential deal is a cornerstone of Canada's ramped-up defense spending, aiming to acquire up to 12 conventionally powered submarines.
The Canadian military procurement is estimated to cost between C$20 billion and C$24 billion, excluding long-term support. Beyond mere performance and price, Canada is prioritizing industrial cooperation and job creation as critical factors in the decision-making process. South Korea aims to present the project as a broad industrial partnership, potentially generating significant domestic output and employment.
