{"id":77095,"date":"2026-07-07T04:16:06","date_gmt":"2026-07-07T04:16:06","guid":{"rendered":"https:\/\/www.europesays.com\/korea\/77095\/"},"modified":"2026-07-07T04:16:06","modified_gmt":"2026-07-07T04:16:06","slug":"disappointment-in-south-korea-after-losing-canadian-submarine-contract","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/korea\/77095\/","title":{"rendered":"Disappointment in South Korea after losing Canadian submarine contract"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Prime Minister Mark Carney climbs down a ladder into a submarine during a tour of the Hanwha Ocean Shipyard in Geoje Island, South Korea, in October last year.Adrian Wyld\/The Canadian Press<\/p>\n

South Korean President Lee Jae-myung vowed to support the country\u2019s defence industry after a consortium led by Hanwha Ocean failed to win a key Canadian submarine procurement project<\/a>. <\/p>\n

In a statement, Mr. Lee said South Korea\u2019s \u201cworld class\u201d defence industry was \u201ca core industry for national competitiveness.\u201d <\/p>\n

\u201cAlthough we did not achieve the expected results in the recent Canadian submarine project, I believe we have once again clearly demonstrated our potential to the international community,\u201d he added.<\/p>\n

Following a 10-month battle between the Hanwha consortium and Germany\u2019s TKMS for the Canadian contract, Prime Minister Mark Carney announced Monday that Ottawa had decided to go with the German company, which also supplies more than a third of the NATO alliance. <\/p>\n

Canada picks Germany\u2019s TKMS over South Korea\u2019s Hanwha to build submarine fleet<\/a><\/p>\n

The desire for interoperability with other members of the North Atlantic Treaty Organization was widely seen in South Korea as the deciding factor, and may serve to smooth over any sense of being snubbed by Canada, which has been working to cultivate a closer relationship with Seoul. <\/p>\n

In a statement<\/a>, Hanwha said it was \u201cnot able to overcome the barrier posed by the NATO alliance, despite making all-out efforts backed by the government\u2019s full support, the outstanding performance of our submarines and the Navy\u2019s successful experience operating submarines.\u201d <\/p>\n

Shares in Hanwha dropped more than 20 per cent in early trading Tuesday. <\/p>\n

Mr. Carney said the South Korean defence company would be the \u201creserve supplier\u201d should negotiations with TKMS prove unsuccessful. The prime minister said he spoke to Mr. Lee ahead of the announcement Monday, noting South Korea and Germany were both \u201ccritical strategic partners to Canada in this new world.\u201d <\/p>\n

\u201cI can see this is a disappointment\u201d for South Korea, Mr. Carney said. \u201cWe are moving forward with the relationship because there\u2019s so many things we can do together.\u201d <\/p>\n

South Korea\u2019s Defence Acquisition Program Administration described the Canadian decision as \u201cdeeply regrettable.\u201d <\/p>\n

\u201cThe fact that the Republic of Korea, which previously imported submarine technology from Germany, competed on equal footing with the original submarine originator in terms of all technical capabilities\u2014including performance and delivery time\u2014is a significant achievement demonstrating the rapid growth of our defence technology,\u201d it said in a statement. <\/p>\n

\u201cAlthough we were unable to overcome the disadvantages of strategic conditions, the Defense Acquisition Program Administration will not let the experience of this project remain merely a failure and a setback, but will turn it into a valuable lesson for the leap to becoming one of the top four defence powers.\u201d <\/p>\n

Opinion: Canada picks an ally in its new wave of geopolitical military spending<\/a><\/p>\n

Since August, 2025, Hanwha and TKMS \u2013 and the countries backing them \u2013 have waged a very public campaign to win the 12-submarine contract. <\/p>\n

Hanwha promised more than $70-billion in trade and investment in Canada, and more than 25,000 jobs annually between 2026 and 2044, while TKMS said its proposal would generate $167-billion in total economic activity across Canada, deliver over $86-billion in economic impact, and create over 650,000 job-years across Canada during the life of the project. A job-year means one job for one year.<\/p>\n

Canada hasn\u2019t purchased unused submarines since the 1960s, during the Cold War, and has never ordered anywhere near 12 at once. Canada currently owns four subs, all of which were purchased second-hand, and only one of which is typically operational.<\/p>\n

The Canadian military has said that it needs 12 subs to properly defend the country, based on the assumption that for high readiness only one of every four vessels would be fit to deploy, with others under maintenance or used for training.<\/p>\n

The purchase will give Canada three submarines to deploy at any time \u2013 stealth machines that will create an ability to deter hostile or rival countries from prowling around the country\u2019s Arctic, or its Pacific and Atlantic coastlines.<\/p>\n

With files from Steven Chase<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Prime Minister Mark Carney climbs down a ladder into a submarine during a…\n","protected":false},"author":2,"featured_media":77096,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[18487,18478,18488,1523,18470,18489,363,18469,18483,18484,18480,18471,18468,119,12048,77,18482,18476,18498,18472,18473,9581,31,18479,2659,1175,18490,18475,18493,18494,18496,8374,18495,4262,18492,18474,17865,18486,414,18485,18491,33,18477,1013,4714,18481,17057,76,18497],"class_list":["post-77095","post","type-post","status-publish","format-standard","has-post-thumbnail","category-south-korea","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-korea","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-south-korea","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/77095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=77095"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/77095\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/77096"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=77095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=77095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=77095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}