Canadian media report no split contract expected

Ministry of National Defense spokesperson Jeong Bit-na [Yonhap]
Ministry of National Defense spokesperson Jeong Bit-na [Yonhap]

South Korea's Ministry of National Defense said Tuesday it would carefully await the outcome of Canada's next-generation submarine competition, as the country enters a final showdown with Germany for the contract.

Defense Ministry spokesperson Jeong Bit-na, speaking at a regular briefing Tuesday, was asked about Canada's Patrol Submarine Project (CPSP). "We are aware of the relevant reports," she said. "What I can say is 'do your best and leave the rest to heaven' — we will wait for the result."

Canadian media reported Sunday that Defense Minister David McGuinty had said a split contract award between the two competing firms was unlikely, citing cost and management efficiency concerns.

The ministry appeared to be maintaining a cautious stance, refraining from publicly assessing the Canadian remarks or analyzing how they might favor or disadvantage South Korea. It is limiting its role to monitoring developments through official channels and supporting the companies' own sales efforts. Officials are also believed to have judged that publicly prejudging the outcome could place unwanted pressure on Canada's decision-making process.

Canada is pursuing the CPSP to acquire up to 12 next-generation diesel-electric submarines to replace its aging fleet of four Victoria-class vessels.

The total program value — including acquisition costs and more than 30 years of maintenance, repair and overhaul (MRO) — is estimated at up to 60 trillion won ($38.9 billion).

The Canadian government has framed the procurement not as a straightforward submarine purchase but as a comprehensive defense partnership model, requiring each bidder to submit a large-scale industrial cooperation package covering domestic supply chain development, technology transfer and local job creation.

The competition has narrowed to a two-horse race between a South Korean consortium of Hanwha Ocean and HD Hyundai Heavy, and Germany's ThyssenKrupp Marine Systems (TKMS).

South Korea is leading with a design based on its KSS-III 3,000-ton-class submarine, highlighting its combat-proven operational record, a validated platform and a faster delivery schedule as its key advantages.

TKMS is proposing the Type 212CD design, jointly developed by Germany and Norway, and is emphasizing a "political and strategic package" built around interoperability and joint maintenance networks among NATO allies, as well as combined operations in the North Atlantic and Arctic.

Canadian media have predicted an announcement will come before Prime Minister Mark Carney departs for the NATO summit in Ankara, Turkey, on July 7.


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