South Korea's Naval Push: Competing for Canada's $12 Billion Submarine Contract

South Korea's presidential chief of staff is heading to Canada with Hyundai Motor and shipbuilding executives to secure a major submarine contract, valued at over $12 billion. Competing against Germany's TKMS, the project could create 20,000 jobs and significantly benefit South Korea's economy and defense sector.

South Korea is intensifying efforts to secure a lucrative submarine contract in Canada, dispatching top officials and industrial leaders, including the presidential chief of staff and Hyundai Motor executives. The contract involves producing up to 12 diesel-powered submarines for Canada's naval forces, potentially generating over $12 billion in value.

In a competitive bid against Germany's maritime giant TKMS, South Korea underscores its technological prowess and political commitment to enhancing bilateral ties. Chief of Staff Kang Hoon-sik expressed optimism, emphasizing the deal's economic impact, which includes an estimated 40 trillion won contribution and 20,000 new jobs for the Korean economy.

Hyundai Motor Group Executive Chair Euisun Chung joins the mission, despite current plans ruling out a local car factory in Canada. Nonetheless, his involvement suggests potential collaboration opportunities, potentially expanding into the hydrogen energy sector. Meanwhile, TKMS is also ramping up its efforts, offering an attractive investment package in collaboration with Norwegian and German partners.

(With inputs from agencies.)