A group of three South Korean companies has presented a substantial, multibillion-dollar proposal to Canada, pledging to swiftly replace the navy’s aging submarines, enhance the army’s firepower, and contribute to the rejuvenation of the country’s defense industrial sector. The detailed unsolicited offers were submitted to the federal government in early March and disclosed to CBC News.
Supported by the South Korean government, the companies are keen on expanding the defense and security partnership established with former Prime Minister Justin Trudeau in Seoul two years ago. Hanwha Ocean and Hyundai Heavy Industries jointly submitted a comprehensive proposal valued between $20 billion to $24 billion. They aim to supply the first four submarines by 2035, aligning with the Royal Canadian Navy’s current deadline for receiving just one new submarine. Additionally, the proposal includes plans for constructing maintenance facilities within Canada, creating employment opportunities for Canadians.
Hanwha Aerospace, a sister company to the shipyard, separately presented detailed proposals for equipping the army with large, mobile howitzers and rocket-propelled artillery, akin to the U.S.-made High Mobility Artillery Rocket System (HIMARS). The proposals, exceeding $1 billion, offer quick delivery times and the potential for establishing maintenance and manufacturing centers in Canada.
These initiatives mark an unprecedented effort to steer Canada towards procuring military equipment from sources beyond the United States and Europe. Deputy Defence Minister Hyunki Cho emphasized the long-term partnership focus, aiming to enhance Canada’s defense industry capabilities and promote further defense cooperation.
The bids come at a time when Canadians are questioning major military purchases from the U.S., leading the Canadian government to reevaluate plans like the F-35 fighter program. While Korean Aerospace Industries (KAI) expressed interest in selling its FA-50 aircraft, South Korea’s pursuit of other defense partnerships reflects a shift in global defense procurement dynamics.
As Canada explores procurement alternatives, South Korean companies are positioning themselves as reliable suppliers capable of meeting urgent military equipment needs. With a proven track record in supplying quality products promptly, South Korea aims to establish itself as a major arms manufacturer globally, offering Canada an attractive option for enhancing its defense capabilities swiftly.