"Korea and Germany are both automobile manufacturing countries. If there is potential for cooperation in this field, we want to expand beyond defense to larger economic cooperation. This is a much bigger business than the submarine program."
Stephen Pue, Canada's special Minister for defense procurement overseeing the 60 trillion won Canadian Patrol Submarine Project (CPSP), visited Hanwha Ocean's Geoje site on the 2nd and said as much. In the submarine bidding war between Korea and Germany, it is a declaration that direct investment and economic benefits to national industries across the board, including automobiles, will be prioritized.
◇ "Both Korea and Germany meet the technical bar… the decider is direct investment"
After confirming Hanwha Ocean's submarine construction capability that day, Minister Pue made clear that the decisive criterion for this project lies in its industrial ripple effects. "From the outset, we have said clearly that submarines from both Korea and Germany meet all the essential requirements demanded by the Royal Canadian Navy," Pue said, adding, "The core of the procurement is expense and schedule, and the economic benefits to Canada."
On the judgment that the performance gap between Korea's and Germany's submarines is not large, it means Canada will look at which country can give more tangible help in restructuring the Canadian economy. Minister Pue added, "This project has evolved into a government-to-government (G2G) contest," and "We will be in a relationship with the winner for decades, so ultimately the key is who offers the best economic opportunities for Canada."
He also drew a line under cultural differences that the Korean side worries about in competition with European countries. Minister Pue said, "Canada is building cooperation capabilities with countries that share our values, and we have good relations with both Korea and European countries," adding, "Whichever country it is, concerns such as cultural differences will not be an issue, in my view."
Instead, what Minister Pue stressed was concrete investment. Minister Pue said, "Canada is in a situation where it must restructure its economic framework, and jobs and economic opportunities are very important," and "We encourage direct investment by foreign corporations and hope Canadian companies and workers will participate together."
◇ Boarding the Jang Young-sil and calling it "astonishing technology"... also checking MRO capabilities
That day, Minister Pue and about 30 Canadian government and corporate officials toured Hanwha Ocean's assembly plant and examined production automation facilities using welding robots. Boarding the Jang Young-sil during sea trials, Minister Pue said, "It was a tremendous experience and the internal technological capability is astonishing."
Hanwha Ocean briefed Minister Pue in detail on plans for industrial cooperation with local Canadian corporations. Hanwha Ocean and Hanwha Systems on the 26th of last month had already signed memorandums of understanding for strategic investment with five corporations in Canada's steel, AI and space sectors, actively responding to the "Buy Canadian" policy.
Kim Hee-cheul, head of Hanwha Ocean, said, "Minister Pue's visit is an on-site confirmation and review of the CPSP," adding, "We emphasized that we are not only providing the optimal solution to the Royal Canadian Navy but also a partner that will grow alongside Canadian industry." Meanwhile, after visiting Hanwha Ocean, Minister Pue's delegation visited the Navy Submarine Force Command in Jinhae to tour the Navy's education and training system and maintenance, repair and overhaul (MRO) facilities, confirming Korea's full life-cycle management capabilities for submarines.