The domestically built submarine ROKS Dosan Ahn Chang-ho (SS-III, 3,000-ton class) arrives at Canadian Forces Base Esquimalt in Victoria, Canada, on June 24 (local time) to participate in a South Korea-Canada joint naval exercise. [Yonhap]
The domestically built submarine ROKS Dosan Ahn Chang-ho (SS-III, 3,000-ton class) arrives at Canadian Forces Base Esquimalt in Victoria, Canada, on June 24 (local time) to participate in a South Korea-Canada joint naval exercise. [Yonhap]

South Korea's Defense Acquisition Program Administration said Tuesday that while the country competed on equal technical footing with Germany in the Canada Patrol Submarine Project, the NATO-centered geopolitical environment ultimately proved decisive.

DAPA said it "respects the result of the CPSP announced by the Canadian government," but added that it was "deeply regrettable that the outcome did not meet expectations, given the best efforts of both the government and industry." The CPSP, worth up to 60 trillion won ($39 billion), is a project to replace Canada's aging Victoria-class submarines.

The Canadian government named Germany's ThyssenKrupp Marine Systems as the preferred bidder for the next-generation submarine construction project on Monday (local time). South Korea had mounted a whole-of-government push, with Hanwha Ocean and HD Hyundai Heavy forming a unified team under DAPA's lead, backed by a pan-government task force that included the Ministry of National Defense, the Navy, the Ministry of Trade, Industry and Energy, and the Ministry of Foreign Affairs — but ultimately failed to win the contract.

DAPA said the bid itself carried significant meaning. "The fact that South Korea — a country that once imported submarine technology from Germany — competed on equal terms with the originator of that technology in every aspect, including performance and delivery, demonstrates the remarkable growth of our defense industry," it said.

DAPA also said the competition demonstrated the long-range endurance of the ROKS Dosan Ahn Chang-ho, which crossed the Pacific Ocean to reach Canada during the bidding process. "This served as an opportunity to imprint the capabilities of the K-defense industry not only on Canada but on the global defense market," it said.

Canada has consistently emphasized the need to strengthen security cooperation with NATO, and Germany supplies roughly 70 percent of NATO's submarine fleet. Analysts have noted that Canada also weighed the possibility of jointly operating submarines with Germany and Norway. The announcement came just before Canada's participation in a NATO summit, lending weight to the view that the decision was tied to broader trans-Atlantic security cooperation.

DAPA acknowledged the structural disadvantage of being a non-NATO member, saying the country "was unable to overcome the unfavorable strategic conditions." It added, however, that it would "not leave this experience as a mere failure, but use it as a lesson toward becoming one of the world's top four defense exporters."

To reach that goal, DAPA outlined plans for an AI-driven technology transformation and a stronger localization strategy. "We will secure a technological edge through a rapid AI transformation of the defense industry, and expand market entry through a breakthrough localization strategy for key markets," it said, adding that it would continue to develop the cooperative relationship with Canada built during the bidding process.

DAPA chief Lee Yong-cheol said the CPSP bidding process was "a meaningful opportunity to confirm the technological capabilities of Korean submarines and the potential for South Korea-Canada defense cooperation." He said DAPA would use the experience and lessons from the competition as a springboard to further develop its large-scale defense export strategy and strengthen pan-government support going forward.

The selection of TKMS marks only the preferred-bidder stage, and the final contract could take years to conclude. Should negotiations break down, talks with the next-ranked bidder remain possible.


rimsclub@heraldcorp.com