Seoul ramps up bid for Canada’s multibillion-dollar submarine program
South Korean and Canadian officials pledged to deepen cooperation in trade, defense, energy and advanced manufacturing, highlighting the partnership between middle powers as critical amid growing global uncertainty and strains on the international trading system.
The two countries’ growing partnership was highlighted at a reception hosted by the Embassy of Canada in South Korea on Wednesday evening, on the occasion of a Canadian trade delegation to Korea led by Maninder Sidhu, Canada's international trade minister.
More than 500 people attended the reception, including delegates from over 100 Canadian organizations alongside nearly 300 Korean government officials and business executives.
“The world is shifting. Supply chains are breaking and being tested. Alliances are being excruciatingly tested and every country, every boardroom, every CEO and every trade minister is asking the same question. Who can we count on?” Sidhu said.
He emphasized that Canada and South Korea are natural partners in such an environment, with Canada offering clean energy, critical minerals and natural resources, along with one of the world's most highly educated workforce on a per-capita basis.
The minister stressed Canada’s vast critical minerals resources, saying the country is home to 31 priority critical minerals, including 10 of NATO’s 12 defense-critical minerals for batteries, semiconductors and aerospace.
He also highlighted its growing exports of liquefied natural gas to Asia, including South Korea.
“Canada is empowering the world and Korea is one of the most important partners,” said Sidhu.
Sidhu said bilateral trade in goods and services now exceeds 25 billion Canadian dollars ($18 billion), while Korean investment in Canada reached CA$12 billion in 2024, about triple the level of a decade earlier.
He also noted that nearly 250,000 Canadians visit South Korea each year and that Canada is home to nearly 220,000 Korean Canadians.
"This is a human relationship built over generations and this is what building together looks like ... we lift each other up," he said, invoking the Korean phrase "sangbu sangjo" that means helping one another.
South Korean Trade Minister Yeo Han-koo echoed the sentiment, saying the two countries should work together more closely as the global trading system comes under pressure.
“The multilateral trading system is facing erosion and like-minded nations like Korea and Canada must act together to defend the rules-based international orders,” said Yeo. “At this time of great uncertainty and turbulence. Korea seeks to deepen our bond with Canada not only to weather the storm together, but to explore new avenues of opportunity.”
As an example of partnership, Yeo pointed to Canada’s submarine procurement deal, in which South Korean companies are bidding for a contract worth CA$60 billion.
“I'm confident that this project will usher in a new strategy renaissance, elevating our bilateral partnership to a new frontier of cooperation,” said Yeo.
“With Korea's world-class manufacturing capabilities combined with Canada's abundant resources and technology, we can create the next ‘KPop Demon Hunters’ success story,” he added, referring to the megahit Netflix film directed by Korean Canadian filmmaker Maggie Kang.
The Canadian delegation’s visit this week to the country comes as Seoul is pushing all-out efforts to secure the Canadian Patrol Submarine Project, the Royal Canadian Navy’s planned purchase of up to 12 new diesel-powered submarines to replace its aging fleet.
South Korea’s Hanwha Ocean-led consortium with HD Hyundai Heavy Industries is up against Germany’s Thyssenkrupp Marine Systems. The preferred bidder is expected to be selected in June. Should South Korea secure the deal, it would mark the largest single export order for the country’s defense industry.
The Korean government and participating companies have pitched the project as more than a simple arms sale, portraying it as a broader industrial partnership that would bring investment, supply chain development, job creation and technology cooperation across sectors including shipbuilding, steel, defense and artificial intelligence
During Sidhu's meeting with Industry Minister Kim Jung-kwan on Tuesday, the two discussed the importance of the submarine deal in bolstering industrial ties between the two countries. He also met with executives from Hanwha Ocean, HD Hyundai Heavy Industries and Hyundai Motor Group.
sahn@heraldcorp.com
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