Kang Hoon-sik, chief of staff to the president, will depart on the 26th as the president's special envoy for strategic economic cooperation to win the $60 trillion Canada Patrol Submarine Project (CPSP) for next-generation submarines. Hyundai Motor Group Chair Chung Eui-sun, Hanwha Group Vice Chair Kim Dong-Kwan, and HD Hyundai Heavy Industries Shipbuilding and Medium Vessels Division President Joo Won-ho, among other major corporations in shipbuilding and the defense industry, will join to support the bid. With the final shortlist narrowed to Korea and Germany, the envoy team led by Kang will visit Norway after Canada.
Meeting reporters at Incheon Airport before departure that morning, Kang said, "Along with the excellent performance of our submarines, I will meet Canada's top leadership to directly convey our government's intent to expand industrial and security cooperation between the two countries."
Kang said, "Germany is a manufacturing powerhouse in automobiles and advanced chemicals, and considering that we received technology transfer from Germany in the early stages of our submarine development, the situation (for winning the bid) is not easy," but added, "This submarine deal is one of the largest among recent defense contracts, and we estimate the domestic production inducement effect alone at at least 40 trillion won."
He also said, "If we win the bid, more than 300 partner firms will get work, and more than 20,000 jobs will be created," adding, "If we can raise the chances of winning even a little, and if we can convey Korea's sincerity, the envoy team's role is to do our best through this visit."
CPSP is a large project to build up to 12 diesel submarines. Adding the submarine construction expense (up to 20 trillion won) and 30 years of maintenance, repair and operations (MRO) expense after introduction, the project totals up to 60 trillion won. Because the limits are high for individual corporations to take on alone, the government aims to actively support the bid based on the expected effects of "industrial cooperation" and "job creation" between the two countries. The Canadian government has also said that, in selecting a partner for this project, it will weigh not only the submarines' performance and price but also the potential for industrial cooperation.
Kang said he will continue engaging with Norway, Saudi Arabia, the UAE, Indonesia and Peru to support defense cooperation and bids. He added, "We already made a brief visit to Norway as the president's special envoy to deliver a personal letter last time, and we are visiting with the expectation that results will come in the near future."