For Korea to win the Canada next-generation submarine program (CPSP), estimated at up to 60 trillion won, it needs to present a tailored, government-to-government (G2G) cooperation package strategy, according to a view raised.
The Democratic Party of Korea special committee on the defense industry held a forum on the 12th at the National Assembly Members' Office Building titled "Government-wide cooperation plan to expand Korea-Canada defense industry cooperation" and discussed strategies to counter competitors such as Germany. Canada's CPSP project is a program to procure 12 diesel submarines of 3,000 tons. The procurement contract is worth 20 trillion won, and if maintenance, repair and overhaul (MRO) over 30 years is added, it reaches 60 trillion won. A consortium of Hanwha Ocean and HD Hyundai Heavy Industries and Germany's ThyssenKrupp Marine Systems (TKMS) are in the final competition.
Choi Yong-seon, senior expert adviser at the law firm YulChon, who delivered the keynote presentation, said, "The defense industry is now an area that goes beyond weapon performance competition to designing alliances and industrial contributions," and noted, "The success or failure in winning the Canada submarine deal depends on how well it meets the Canadian government's core national tasks of the 'Buy Canadian policy' and 'energy and resource security cooperation.'"
Choi referenced Germany's strategy, saying, "Germany is preparing in a very structured way to match the answer sheet Canada wants," and assessed, "Germany is extending its submarine cooperation with Norway to Canada to present an Arctic alliance vision, and it has already made government-wide cooperation concrete in energy, critical minerals and naval combat systems."
He then presented Korea's response, saying, "We need to present a differentiated strategy through a government-wide G2G cooperation model that links energy, critical minerals and advanced manufacturing capabilities." He added, "In particular, Korea can show competitiveness in areas Germany has not sufficiently presented, such as space, satellite communications, Arctic sea route surveillance and midstream processing of critical minerals."
Other experts made similar points. Moon Geun-sik, a special professor at Hanyang University's Graduate School of Public Policy, explained that the Canada submarine project should be based on a national strategic partnership rather than a simple defense contract. The performance gap between Korean and German submarines is minimal, and in terms of the long-term, comprehensive partnership and flexibility that Canada values, Korea should deliver a stronger industrial and diplomatic message through a national capability package, he emphasized.
Yoo Hyung-gon, head of the policy research center at the Korea Defense Technology Society, emphasized that to strengthen the capacity to respond to export offsets, a "control tower such as a task force led by the Office of National Security" should be operated to activate interagency cooperation and reinforce the functional roles of support institutions.
The government and the National Assembly also agreed on the need for a government-wide response. Kim Byung-joo, a lawmaker who chairs the Democratic Party defense industry special committee, said, "We need a one-team system where diplomacy and security, industry and trade, finance and guarantees, and technology and security move like a single operation." Defense Acquisition Program Administration chief Lee Yong-chul also said, "The Canada submarine project is a national strategic project," adding, "It is time for the government, National Assembly and industry to respond as one team."
Chief of staff Kang Hoon-sik and Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources are reportedly planning to visit Canada in the latter part of this month to explain an industrial cooperation package between Korea and Canada for the submarine bid. Officials from Hanwha Group and Hyundai Motor are also likely to accompany them.