Britain's defense push adds new variable to Canada submarine equation

by Kim Hee-su Posted : July 1, 2026, 16:17Updated : July 1, 2026, 16:17
A Royal Canadian Navy Victoria-class submarine is seen at sea in this undated photo published by the Government of Canada
A Royal Canadian Navy Victoria-class submarine is seen at sea in this undated photo published by the Government of Canada.
SEOUL, July 01 (AJP) - Britain's latest defense spending plan has added a new variable to Canada's multibillion-dollar submarine equation, strengthening South Korea's industrial partnership with London as Seoul and Germany compete for one of Ottawa's biggest military contracts.

The British government on Tuesday unveiled an additional 15 billion pounds ($20 billion) in military spending, focusing on drones, autonomous systems, next-generation fighter aircraft and other technologies expected to define future warfare.

Under the plan, Britain's defense spending will rise to 2.7 percent of gross domestic product by 2029, still short of the government's longer-term NATO commitments. London has pledged to increase the figure to 3 percent during the next parliamentary term and to NATO's 3.5 percent target by 2035, although it has yet to present a detailed funding roadmap.
 
Screenshot from the UK government website
Screenshot from the U.K. government website.
The strategy underscores Britain's growing reliance on international industrial partnerships despite Brexit as it modernizes its armed forces while grappling with budgetary and production constraints at home.

"This demands a decisive strengthening of European capabilities," British Prime Minister Keir Starmer said, adding that the effort was intended not to replace the United States but to reinforce the transatlantic alliance.

The renewed emphasis on defense cooperation comes as Europe prepares for a future in which Washington expects allies to shoulder a greater share of the continent's security burden. During the recent U.S.-Iran conflict, President Donald Trump criticized NATO members for staying out of the U.S. military campaign and again threatened to reduce America's commitment to the alliance.

Although Washington has since reaffirmed its support for NATO, the episode has intensified pressure on European governments to strengthen domestic defense industries while expanding partnerships with trusted allies.

That changing strategic environment is becoming increasingly relevant to the Canadian Patrol Submarine Project (CPSP), under which Ottawa plans to procure up to 12 conventionally powered submarines.

The competition has narrowed to South Korea's Hanwha Ocean, offering the KSS-III Batch-II submarine, and Germany's Thyssenkrupp Marine Systems (TKMS), which is proposing its Type 212CD design.

"CPSP is not just about delivering a submarine platform. It is about building long-term industrial capability and skilled jobs in Canada," said Charlie S.C. Eoh, head of Hanwha Ocean's naval ship business.

Hanwha has partnered with British defense company Babcock for the Canadian bid. Under the proposed arrangement, Hanwha would build the submarines, while Babcock Canada would provide in-country maintenance, repair and long-term lifecycle support.
 
British Prime Minister Keir Starmer left followed by Chancellor of the Exchequer Rachel Reeves and Defense Secretary Dan Jarvis arrive for the announcement of a defense plan in Berkshire England on June 30 2026 Pool Photo-AP
British Prime Minister Keir Starmer (left) followed by Chancellor of the Exchequer Rachel Reeves and Defense Secretary Dan Jarvis arrive for the announcement of a defense plan in Berkshire, England on June 30, 2026. Pool Photo-AP
Britain's defense cooperation with South Korea predates the Canadian competition. Under the 2023 Downing Street Accord, London and Seoul agreed to pursue joint weapons development and signed a memorandum of understanding to identify priority markets for future defense exports.

Babcock has also participated in South Korea's KSS-III submarine program since 2011. Under a seven-year contract awarded by Hanwha Ocean, key components of the submarine's weapons handling and launch system are designed and manufactured in Britain, with other components produced under license in South Korea.

The British government has likewise expressed support for the partnership, giving Hanwha additional diplomatic backing as it seeks to challenge Germany's long-established position as a NATO submarine supplier.

"The U.K. government would like to work with Hanwha on the Canadian submarine project," British Ambassador to South Korea Colin Crooks said during a recent reception attended by President Lee Jae Myung.

TKMS, meanwhile, is emphasizing the Type 212CD's interoperability with NATO forces and the industrial ecosystem built around its joint submarine program with Norway. Its proposal offers Canada access to an established European defense partnership involving two NATO members.

The Hanwha-Babcock partnership seeks to narrow that advantage by combining South Korea's shipbuilding capability with Britain's defense industrial network, reinforcing its credentials in NATO interoperability, long-term sustainment and allied industrial cooperation.

Britain's latest defense investment should not, however, be interpreted as a direct endorsement of Hanwha's Canadian bid.

The Canadian submarine project is not mentioned in the government's defense strategy, and London has not publicly linked the spending package to the competition. But the plan does reinforce Britain's broader commitment to expanding international defense industrial partnerships, a trend that could strengthen the strategic rationale behind the Hanwha-Babcock alliance as Ottawa weighs not only submarine performance, but also long-term industrial and geopolitical partnerships.