Ranked as the world’s fifth most powerful military according to the Global Firepower Index 2026 (behind US, Russia, China and India), South Korea is also emerging as a defense export powerhouse.
A high-level South Korean delegation, led by Presidential Chief of Staff Kang Hoon-sik and including key government officials and executives from the nation’s top shipbuilders, has traveled to Canada to highlight Seoul’s full commitment to securing the lucrative Canadian Patrol Submarine Project (CPSP).
Canada is seeking to replace the Royal Canadian Navy’s (RCN) aging Victoria-class submarines with a new fleet of up to 12 diesel-electric submarines with specialized under-ice capabilities.
Ahead of the visit, Hanwha announced an industrial benefits package that proposes alliances with some of the top Canadian firms, including Algoma Steel, Telesat, MDA Space, Cohere, and PV Labs. The move is reportedly meant to leverage the industrial network to support lobbying for the country’s submarine deal.
Notably, the visit of the South Korean delegation comes months after Canadian Prime Minister Mark Carney down-selected Germany’s Thyssenkrupp Marine Systems (TkMS) and South Korea’s Hanwha Ocean Co., Ltd. for the Canadian Patrol Submarine Project (CPSP) procurement in August 2025, after carefully considering other designs, including Saab’s oceanic/extended-range A26, Navantia’s S-80 Plus, and Naval Group’s Blackfin Barracuda.
At the time, Carney said that the process helped determine that the two consortia met the exacting standards of the Canadian Navy.
“Because in Canada, submarine means weeks under the sea ice, as well as in the Pacific at the same time. So we need to be able to have year-round fleets on all three coasts under quite demanding conditions. So that’s how the field narrows quite quickly. So it’s a testament to both of these companies, both of these consortia, that they qualify,” he stated.
A great day of engagements with leaders from the Canadian and Korean business communities, and government officials.
Thank you to the teams at @HMGnewsroom, @AlgomaSteelInc, @MagnaInt, and @MartinreaInt, as well as Kim Jung Kwan, Chief of Staff to the President of the Republic… pic.twitter.com/g9BAXpHRUv
— Victor Fedeli (@VictorFedeli) January 26, 2026
Prime Minister Carney has said he wants to accelerate the acquisition, with a decision expected by the end of this year. Interestingly, this coincides with burgeoning tensions between Canada and the United States, driven by President Donald Trump’s tariffs on Ottawa and repeated calls for the assimilation of Canada into the continental US.
The US President recently threatened to impose 100% tariffs on goods imported from Canada if it signed a trade deal with China, which is currently under negotiation.
Meanwhile, wary of Trump’s calls to occupy Greenland threatning to make Canada the 51st state of the US, the Canadian troops are preparing for a potential US invasion for the first time in 100 years.
South Korea’s Package Deal To Canada
South Korea’s offer to the Canadian government goes beyond submarines. Last year, for instance, Hanwha Defence and Hyundai Heavy Industries presented Ottawa with an ambitious proposal to modernise Canada’s depleting armed forces with subs, artillery systems, armoured vehicles, and training packages.
This comprehensive package pitched a “revitalisation” of the country’s defence industrial base.
The proposal’s main highlights were the KSS-III submarine, a state-of-the-art vessel developed by Hanwha Ocean and Hyundai Heavy Industries; K9 Thunder self-propelled howitzers; and modern armoured vehicles, as previously reported by the EurAsian Times.
Hanwha and Hyundai Heavy Industries have exported weapon systems to key markets, including India, Poland, Australia, Finland, Norway, Estonia, Turkey, Egypt, and many others.
The K9 self-propelled howitzer, manufactured by Hanwha, has been particularly successful in the export market. With more than 1,800 units operating across 11 countries, the K9 dominates over 50% of the global self-propelled artillery market.
The offer reportedly also includes the K239 Chunmoo Multiple Launch Rocket System (MLRS), the K21 Infantry Fighting Vehicle, and artillery support, such as K10 resupply vehicles.
The South Korean bids to Canada are fully supported by the Seoul government, which is eager to expand its defence partnership with Canada.
Earlier, some reports indicated that the offer also includes setting up local maintenance and manufacturing facilities in Canada and full access to onboard technologies, in stark contrast to the generally restrictive conditions imposed on US weapon systems.
Separately, South Korean officials had signalled that the package deal could also include auto manufacturing, including the prospect of Hyundai Motor setting up a car plant in Canada. However, Hyundai Motor said that it does not presently have any plans to establish a car manufacturing facility in Canada
Nonetheless, the delegation’s diversity emphasises South Korea’s efforts to portray the project as an extensive industrial partnership, with shipbuilding as its focal point.
The Chief of Staff Kang Hoon-sik said that the Canadian submarine project—one of the biggest recent defence acquisitions in the world—would be assessed on industry cooperation and job creation in addition to performance and cost.
He noted that securing the agreement may help more than 300 local suppliers and produce at least 40 trillion won ($27.6 billion) in domestic output, potentially creating more than 20,000 jobs.
Interestingly, the push for the submarine comes amid South Korea’s meteoric rise in shipbuilding, as demonstrated by the latest trade agreement between Washington and Seoul, which is built around South Korea’s commitment to assist in Trump’s “Making American Shipbuilding Great Again” campaign to restore America’s fallen shipyard capacity.
The deal includes a $150 billion Korean investment in the American shipbuilding sector and an additional $200 billion earmarked for industrial sectors.
The South Korean shipyards, operated by Hanwha Ocean in Geoje and HD Hyundai Heavy Industries in Ulsan, are already producing some of the best warships in the world for the South Korean navy in record time and at relatively affordable prices.
KSS-III Submarine For Canada
The Canadian submarine project began in 2021 with a clear goal: keep Canadian waters safe, especially in the Arctic. The then Canadian government stated that it wants to ensure that the Royal Canadian Navy can find, follow, stop, and defeat anyone who tries to cause trouble in any of the three oceans: the Pacific, the Atlantic, or the Arctic.
The country’s defence strategy paper, ‘Our North, Strong and Free: a Renewed Vision for Canada’s Defence,’ published in 2024, also highlighted this point.
With the acquisition of 12 new submarines, the RCN would have one vessel available for deployment in each of the world’s oceans at any given time.
The statement further underscored the need to strengthen security in the Arctic region, which is rapidly becoming more navigable due to global warming and glacier melting. The RCN must secure Canada’s vast coastline and offer “superior underwater surveillance capability” to safeguard the nation’s Arctic sovereignty, it added.
According to sources previously quoted by CBC News, the Canadian government has set a timeline to deliver the first submarine by 2035. However, Hanwha Ocean and Hyundai Heavy Industries submitted a detailed, joint presentation worth US$20 billion to US$24 billion, promising to deliver not one but four KSS-III submarines by 2035.
The KSS-III, a 3,700-ton diesel-electric vessel designed for stealth and endurance, is known for its advanced air-independent propulsion system, which enables extended submerged operations of up to three weeks.
Although the KSS-III Batch 1 boats have a crew of 50, displace 3,358 tons surfaced and 3,705 tons submerged, and measure 274 feet long with a 31.5-foot beam, the Batch 2 and 3 submarines will be bigger.
They are fitted with an innovative vertical launch system (VLS) abaft the sail. The VLS can carry 6 to 10 conventionally armed SLBMs (depending on the variant) for land-attack missions. Additionally, this class of submarines also carries advanced sensors and weapons, including bow, flank, and towed-array sonars and six 21-inch bow tubes for heavyweight torpedoes, such as the new Tiger Shark.
The South Korean KSS-III submarines, priced at around US$1 billion, are also significantly cheaper than the U.S. Virginia-class submarines, which can cost up to US$3 billion per unit.
According to Kang, coordinated public-private initiatives that go beyond the capabilities of individual enterprises are becoming increasingly necessary for large-scale defence programs.
During the visit, he intends to personally convey Seoul’s pledge to senior Canadian officials for increased industrial and security cooperation.
Kang stated that the delegation would focus on establishing a “win-win” framework for bilateral industrial collaboration, but he declined to provide specifics on the bidding approach, citing commercial sensitivity amid active competition.
- Contact the author at sakshi.tiwari13 (at) outlook.com
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