Korea launches all-out push for Canada submarine deal

Jan 27, 2026, 11:05 am

		0
Officials and business leaders from South Korea and Canada attend the third Korea–Canada CEO Dialogue at the Park Hyatt Toronto on Jan. 26, as part of a Korean economic delegation’s outreach. / Courtesy of the Federation of Korean Industries

South Korea’s government and private sector have launched an aggressive joint campaign in Canada to secure the Canadian Patrol Submarine Project (CPSP), valued at roughly 60 trillion won, by leveraging industrial cooperation—particularly in the automotive sector—as a key bargaining chip.

The Ministry of Trade, Industry and Energy said it held the Korea–Canada Industrial Cooperation Forum on Jan. 26 at the Park Hyatt Toronto, as Seoul seeks to gain an edge in the submarine competition amid Ottawa’s emphasis on offset trade and local industrial benefits.

The forum was designed to showcase South Korea’s defense capabilities while demonstrating its willingness to build broad-based partnerships with Canada across advanced industries, including automobiles, aerospace and artificial intelligence.

The first session focused on automobiles under the banner of the Korea–Canada Automotive Industry Cooperation Forum. Attendees included presidential chief of staff Kang Hoon-sik, Trade Minister Kim Jung-kwan, Defense Acquisition Program Administration head Lee Yong-cheol, and Hyundai Motor Group Vice Chairman Jang Jae-hoon.

Canada was represented by senior federal and provincial officials, including Deputy Minister Philip Jennings of Innovation, Science and Economic Development and Ontario Economic Development Minister Vic Fedeli.

During the forum, the two sides discussed ways to strengthen supply chains in future mobility sectors such as eco-friendly vehicles and autonomous driving technologies.

“Automobiles are a core pillar industry that connects both countries,” Kim said. “We will support our automotive industries in jointly exploring opportunities and achieving shared growth.”

A signing ceremony for six memorandums of understanding also took place, covering key strategic areas including steel, space and AI. Major agreements included partnerships between Hanwha Ocean and Algoma Steel, Hanwha Systems and Telesat / MDA, and Hanwha Ocean and Hanwha Systems with Cohere.

The second session featured the third Korea–Canada CEO Dialogue, co-hosted by the Federation of Korean Industries and the Business Council of Canada. More than 30 executives, including Hanwha Group Vice Chairman Kim Dong-kwan, Hanwha Ocean CEO Kim Hee-cheol, and HD Hyundai Heavy Industries President Joo Won-ho, met with Canadian counterparts to discuss the need for closer economic security cooperation.

The Korean economic delegation plans to continue its outreach in Ottawa with talks with International Trade Minister Maninder Sidhu, emphasizing how South Korea’s manufacturing capabilities can contribute to Canada’s industrial development.

“South Korea and Canada should move beyond a simple trading relationship and become strategic partners across industry, security and supply chains,” said Kim Chang-bum, executive vice chairman of the Federation of Korean Industries.

#Canada submarine project #CPSP #Korea–Canada cooperation #defense exports #offset trade