South Korea and Germany Compete for Canadian Submarine Mega-Deal

South Korea's top officials and Hyundai executives traveled to Canada to negotiate a $12 billion contract for new submarines. Competing against Germany, South Korea aims to leverage industrial and security ties with Canada, potentially creating significant economic benefits and thousands of jobs in South Korea.

In an ambitious move to secure a lucrative contract, South Korea's Presidential Chief of Staff has embarked on a Canadian mission alongside Hyundai Motor executives and major shipbuilders, Hanwha and HD Hyundai. This strategic voyage aims to triumph over Germany's TKMS in the race to construct a fleet of diesel-powered submarines for Canada, a project valued at over $12 billion.

Chief of Staff Kang Hoon-sik conveyed the considerable challenge posed by such formidable competition, acknowledging Germany's prowess in manufacturing. Nevertheless, Kang expressed intent to highlight South Korea's exceptional submarine technology and reaffirm both nations' commitment to expanding industrial and security collaboration. Accompanying Kang is Industry Minister Kim Jung-kwan, forming a robust delegation to advocate for this major defense procurement opportunity.

Amid intensifying competition, Hyundai Motor Group Executive Chair Euisun Chung is lending his support, exploring broader collaboration possibilities with Canada. With substantial economic implications, including more than 40 trillion won ($27.62 billion) in benefits and 20,000 jobs, this deal could be transformative for South Korea's defense sector. Business leaders from both countries are slated to meet, discussing cooperation in submarines, batteries, and other strategic sectors.

(With inputs from agencies.)