Canada Hesitant to Split Submarine Orders Between South Korea and Germany

By AJP Posted : June 30, 2026, 08:40 Updated : June 30, 2026, 08:40
Photo of Hanwha Ocean's 3,000-ton 'Changbogo-III Batch-II (KSS-III)' submarine proposed to Canada [Photo: Hanwha Ocean]

The Canadian government has expressed skepticism about splitting orders for its next-generation submarine program, valued at up to 60 trillion won, between South Korean and German companies.

On June 29, Canadian Defense Minister David McGuinty, during a visit to Japan, stated that dividing contracts between the two firms would likely increase costs. He remarked, "Dividing any fleet leads to higher expenses in various aspects," and added that maintaining, operating, and servicing two different fleets presents a complex challenge for any nation. He noted that the government is evaluating all relevant factors.

This statement follows reports that a compromise is being discussed within Canada to deploy South Korean submarines along the Pacific coast and German submarines along the Atlantic coast.

While the Canadian government has not officially ruled out the possibility of splitting orders, McGuinty's comments indicate a preference against it due to concerns over costs and operational efficiency.

The Canadian Submarine Project (CPSP) aims to replace the aging Victoria-class submarines with up to 12 diesel submarines. Including construction costs and 30 years of maintenance, repair, and operations (MRO), the total project cost is estimated to reach up to 60 trillion won.

Currently, the competition is primarily between Hanwha Ocean and TKMS.

Hanwha Ocean has proposed delivering four submarines to Canada by 2035, emphasizing its rapid construction capabilities and potential for industrial cooperation.

In contrast, TKMS highlights its security collaboration with Germany and Norway, operational interoperability within NATO, and a long-term maintenance framework as its strengths.

CTV reported, citing sources, that the announcement of the Canadian government's preferred bidder may be delayed by several days beyond initial expectations. However, it noted that an announcement could occur before Prime Minister Mark Carney departs for the NATO summit in Ankara, Turkey, on July 7.





* This article has been translated by AI.

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