GEOJE — Prime Minister Mark Carney visited a South Korean submarine on Thursday at Hanwha Ocean's shipyard, one of two contenders for Canada's next submarine fleet. This visit coincided with the signing of a new defense partnership between Canada and South Korea. Carney was accompanied by Defence Minister David McGuinty, Vice-Admiral Angus Topshee, and South Korean Prime Minister Kim Min-Seok.

Topshee, commander of the Royal Canadian Navy, praised the submarine, stating, "It’s a beautiful submarine." Hanwha showcased its production facility, which utilizes automated welding technology. Canada plans to acquire up to 12 new submarines to replace its aging Victoria-class fleet, aiming to enhance military capabilities in the Arctic region.

Carney had previously toured a competing submarine facility in Kiel, Germany, on August 26, where he announced the two finalists: Hanwha and Germany's ThyssenKrupp Marine Systems (TKMS). The urgency of the decision is underscored by the fact that only one of the four Victoria-class submarines is currently operational, with all expected to be out of service within a decade. Topshee remarked that a decision within the next year would be ideal, noting, "Both submarines are excellent submarines and meet the requirements that we have."

David Perry, president of the Canadian Global Affairs Institute, described the submarine procurement process as "moving at light speed" compared to typical defense projects. He emphasized the competitive nature of the multi-billion dollar contract, which is also tied to Canada's industrial and trade strategies. McGuinty acknowledged Hanwha as a serious contender but did not provide a timeline for the decision. Factors influencing the choice include delivery timelines, the use of Canadian materials, and the potential industrial benefits.

Perry highlighted the significance of this contract for trade diversification, stating, "Purchasing a new submarine — that’s a lever he can pull on himself." Hanwha has proposed investments in Canadian industries, including lithium-ion battery production and liquefied natural gas, and plans to establish two submarine sustainment facilities on both coasts.

As South Korea's seventh-largest business group, Hanwha aims to leverage its shipyard capacity to meet delivery schedules. The company claims it can deliver four KSS-III submarines by 2035, with the first expected in 2032, and subsequently provide one new submarine each year. They assert that early delivery could save Canada $1 billion in repairs by allowing for the early retirement of the Victoria-class submarines. The estimated cost for the 12 submarines is between $20 billion and $24 billion, excluding service infrastructure.

The KSS-III submarines, which are larger than their German counterparts, utilize lithium-ion batteries and feature vertical launch tubes for ballistic missiles. Although currently in operation with the South Korean navy, these submarines have not yet been exported. South Korea is keen to expand its domestic defense industry and reduce reliance on U.S. imports, aiming to become the fourth-largest arms exporter by 2027.

In contrast, TKMS has received orders for a dozen of its 212CD submarines from Germany and Norway, a design that has yet to be deployed. TKMS claims it can meet Canada's 2035 deadline for the first submarine delivery, but its schedule does not match the rapid pace offered by Hanwha. The German firm is promoting its long-standing reputation as a reliable supplier, having provided about 70 percent of NATO's conventional submarine fleet.

The defense partnership agreement signed earlier on Thursday between Carney and South Korean President Lee Jae-Myung aims to enhance joint military exercises and improve interoperability between the two nations. McGuinty emphasized the importance of deeper engagement in the region, stating, "Ultimately we need to make sure that we are engaged more fulsomely in this region and we’ve chosen Korea for a reason."