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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.
Germany's Thyssenkrupp Marine Systems presents a formidable challenge, given its industrial capabilities and historical role in transferring submarine technology to South Korea. The South Korean delegation plans to convey Seoul's commitment to expanded industrial and security cooperation to Canadian officials. This initiative is part of Seoul's broader overseas defense marketing efforts, with campaigns also underway in other nations.
