South Korea’s $24B Submarine Deal Could Reshape Canada’s Navy

Canada might be at a turning point in how it equips its navy—and South Korea’s $24B submarine proposal could be the deal that changes everything. In an unexpected move, two of South Korea’s top shipbuilders have joined forces to offer 12 high-tech submarines, faster delivery, and domestic job opportunities.

As tensions grow with the U.S. and military demands rise at home, this pitch arrives at the right time. It’s not just about new hardware—it’s about strategy, sovereignty, and speed. Here’s a deeper look at what the offer includes, why it matters, and how it could shift Canada’s defense priorities for years to come.

1. Rival Companies, United Strategy

It’s rare for major defense rivals to join forces. But Hanwha Ocean and HHI set aside competition to pitch a unified package. The goal? Deliver 12 advanced diesel-electric submarines, on time and possibly under budget. It’s a clear attempt to meet Canada’s call for submarine proposals—while offering far more than just hardware.

Their plan includes crew training in Korea, and local infrastructure that would support long-term Canadian jobs in defense maintenance and tech.

2. KSS-III: Built for the Arctic, Armed for Combat

The KSS-III is no basic submarine. It can fire torpedoes and ballistic missiles, travel up to 19,000 kilometers, and operate submerged for over 21 days. It runs quietly with lithium-ion batteries, giving it a stealth edge crucial for under-ice and long-range operations.

Canada’s current Victoria-class subs are decades old, and none are designed for the Arctic. The KSS-III, already in service in South Korea, fills that gap.

3. Full Control Over Systems and Weapons

Unlike some Western-built subs, the KSS-III gives buyers more freedom. South Korean officials say the combat management system is Korean-made—but flexible. Canada can integrate its own systems or opt for Korean or other foreign technology. The sub can also carry Korean-made torpedoes and missiles, offering an alternative to U.S. and European weapons.

4. Faster Timelines, More Value

The Royal Canadian Navy aims to get its first new sub by 2035. South Korea’s offer? Four subs delivered by that date, with the first arriving as early as 2030, if a contract is signed by 2026.

This isn’t just about speed—it’s also about predictability. Hanwha claims the delivery would be on time and on budget, with no surprises, a detail that may appeal to Canadian officials wary of delays seen in past procurement projects.

5. Bigger Picture: Strategic Autonomy

This submarine deal is part of a larger pitch by South Korea to supply Canada with rocket launchers, howitzers, and even armoured vehicles. It comes amid growing tensions with the U.S. under the Trump administration’s renewed trade war rhetoric, and as Canada re-evaluates its reliance on American-made defense gear like the F-35 fighter jets.

South Korea has already built a strong reputation with other NATO countries, including Poland, Australia, and Norway, who’ve purchased similar military equipment. Their offers often include local manufacturing, which makes them more attractive to countries looking to grow domestic defense industries.

Is Canada Ready for a Shift?

South Korea’s coordinated pitch could signal a new era in Canada’s defense policy—one focused on diversified partners, local job creation, and fast delivery of capable systems. With pressure mounting to replace aging submarines and boost army firepower, the deal may be tough to ignore.

But questions remain: Will Canada break away from traditional U.S. suppliers? And is Ottawa ready to commit to this level of defense partnership with South Korea?

What do you think—should Canada shift its military partnerships away from the U.S. and toward countries like South Korea?

More…

• https://www.cbc.ca/news/politics/south-korea-hyundai-heavy-industries-hanwha-ocean-submarine-pitch-1.7527252
• https://armyrecognition.com/news/army-news/2025/breaking-news-south-korea-pushes-rocket-launcher-and-howitzer-deal-in-canada-against-rival-u-s-offer
• https://www.cbc.ca/news/politics/south-korea-canada-submarines-artillery-defence-1.7523180 
• https://www.overheretoronto.com/trump-offers-temporary-tariff-relief-for-canadian-auto-parts-under-usmca