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South Korea jostles with Germany for US$39 billion Canadian submarine deal

Analysts say Berlin and Ottawa’s shared Nato membership remains a significant political obstacle for Seoul

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Canada’s Navy hosts South Korea’s Dosan Ahn Chang-ho submarine during a welcome ceremony in Esquimalt, British Columbia, last month. Photo: The Canadian Press via AP
The Korea Times

The South Korean government and defence players are making last-ditch efforts to win Canada’s next-generation submarine project worth up to 60 trillion won (US$39.14 billion), as Ottawa is expected to select a preferred bidder by the end of this month.

Under the Canadian Patrol Submarine Project, the Royal Canadian Navy’s ageing fleet of four Victoria-class submarines will be replaced with 12 new 3,000-tonne diesel-electric vessels. The comprehensive contract includes long-term maintenance, repair and overhaul (MRO) life cycles.

With a decision looming, Seoul has elevated its bid to top-tier head-of-state diplomacy, seeking to give South Korea’s consortium, led by Hanwha Ocean, an edge over rival bidder TKMS of Germany – a traditional heavyweight in submarine technology – in the closely contested race.
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President Lee Jae Myung recently provided critical diplomatic backing during a bilateral summit with Canadian Prime Minister Mark Carney on the sidelines of the Group of Seven summit in Evian-les-Bains, France. Lee said he emphasised South Korea’s readiness to contribute to Canada’s defence capabilities, but acknowledged during a Friday press conference that the outcome remains difficult to predict.

Hanwha Ocean’s bid centres on the 3,000-tonne Dosan Ahn Chang-ho, a KSS-III-class submarine built by its predecessor Daewoo Shipbuilding & Marine Engineering. The company has proposed delivering the first four vessels to Canada by 2035 and completing all 12 by 2043.

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Unlike TKMS’ paper design, the KSS-III’s main selling point is its proven track record, as it is already actively deployed and operated by the South Korean Navy.

Moon Keun-sik, a professor at Hanyang University’s Graduate School of Public Policy and a former South Korean submarine captain, believes Seoul holds a slight technological edge.

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