Korean media deeply disappointed: Canada selects "German submarine manufacturer"… South Korean team fails to break through the NATO barrier

Mark Carney: "A very close decision… Hanwha Ocean is a powerful company." "I spoke with President Lee Jae-myung over the weekend… I understand Korea's disappointment." "South Korea is a democratic nation and an important strategic partner."

The Canadian government officially announced on the 6th that it has selected ThyssenKrupp Marine Systems (TKMS) of Germany as the preferred negotiation partner for the "Canadian Patrol Submarine Project (CPSP)." The joint bid by South Korea's Hanwha Ocean and HD Hyundai Heavy Industries competed fiercely for the new submarine contract, but ultimately fell short.

On the afternoon of the same day, Carney made the announcement at a press conference in Halifax, stating: "As part of our commitment to defend Canada and support our allies, we have selected TKMS as the preferred negotiation partner for the submarine project. This is a significant step forward." He also emphasized: "If negotiations with TKMS fail, the Canadian government retains the right to negotiate with Hanwha Ocean. This was a difficult and closely contested decision between two outstanding suppliers." Carney reiterated during a subsequent press conference: "Hanwha Ocean is also a very strong (very strong) company."

The project aims to replace Canada’s four Victoria-class submarines, scheduled for retirement in the mid-2030s, with up to 12 diesel-powered submarines, with an estimated total value reaching 60 trillion won (approximately 26.64 billion RMB). This marks the first time since the 1960s during the Cold War that Canada has purchased new submarines. Currently, although the Canadian Navy operates four aging submarines, it is said that only one is typically capable of carrying out combat missions.

Hanwha Ocean had proposed the KSS-III Batch-2, known as the "Gangwon-III," alongside the TKMS 212CD proposal. Additionally, Hanwha Ocean pledged to create more than 25,000 jobs annually from 2026 to 2044, generating over 7 billion CAD in trade and investment. The company also plans to invest 200 million USD in Canada’s steel firm, Algoma, and purchase 50 million USD worth of steel required for submarine construction. TKMS’s proposal promises to increase Canada’s GDP by 86 billion CAD during the project period, creating over 650,000 "job-years" (a unit measuring one person employed for one year).

At the press event that day, Carney said: "Both TKMS and Hanwha Ocean met Canada’s Royal Navy’s exceptionally high performance standards. Both parties presented compelling proposals to maximize benefits for Canadian workers and businesses. On behalf of the Canadian government and people, I thank both companies and their respective governments for the thoughtful and comprehensive proposals they submitted. As democratic nations, Germany, Norway, and South Korea are important strategic partners of Canada."

During the press conference, a question arose regarding Hanwha Ocean’s failure to win the contract. When asked, “What message would you like to convey to those in Korea who may feel disappointed?” Carney responded: "I discussed this issue with President Lee Jae-myung over the weekend, and I understand their disappointment. We will continue discussing other strategic issues of mutual concern. The two countries are collaborating across many areas."

This was an unprecedented bidding war, but the decisive factor in the outcome appears to be geopolitical considerations. According to Bloomberg, "This choice aligns with Prime Minister Mark Carney’s direction—strengthening ties with Europe amid growing skepticism toward U.S. commitments to NATO." CBC Canada stated: "This decision will serve as an opportunity for Canada to further shift closer to Europe while maintaining some distance from the United States and pursuing its own independent path. South Korea will undoubtedly be deeply disappointed."

In fact, Carney repeatedly mentioned NATO throughout the day. He said: "Three months ago, we announced here that Canada achieved the NATO target of allocating 2% of GDP to defense spending—the first time since the fall of the Berlin Wall. The Arctic region is increasingly becoming central to North American security and the western front of NATO."

The German government welcomed the decision. A German government official told Reuters: "The decision to choose a German submarine over a Korean one will mark a good beginning for long-term strategic cooperation." The heads of state of Canada and Germany are scheduled to meet during the upcoming annual NATO summit starting on the 7th.

Source: Chosun Ilbo

Original article: toutiao.com/article/1870044980992075/

Disclaimer: This article reflects the personal views of the author