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South Korea competes with Germany for $39 billion Canadian submarine contract

South Korean government is vying for a 60 trillion won submarine contract from Canada, aimed at replacing Royal Canadian Navy's aging fleet. A decision is anticipated by month’s end, as South Korea's Hanwha Ocean showcases its KSS-III-class submarine in competition with Germany's ThyssenKrupp Marine Systems.

BRIC Team
BRIC Team
Jun 21, 2026 · 1 min read · 5 views
South Korea competes with Germany for $39 billion Canadian submarine contract

Key Takeaways

  • The submarine contract from Canada is valued at approximately 60 trillion won, equivalent to US$39.14 billion.
  • The Royal Canadian Navy aims to replace its four Victoria-class submarines with 12 new 3,000-tonne vessels.
  • Hanwha Ocean plans to deliver the first four KSS-III-class submarines by 2035, completing the fleet by 2043.
  • Analysts highlight South Korea's challenge due to Germany's NATO membership influencing Canada's decision-making process.
  • Professor Moon Keun-sik notes South Korea's slight technological edge over TKMS due to real-world deployment experience.

South Korean government ramping up push for big submarine deal from Canada,worth about 60 trillion won (US$39.14 billion). Decision due by month's end. Competition tough,especially against Germany's ThyssenKrupp Marine Systems (TKMS). Project will replace Royal Canadian Navy's old Victoria-class subs with 12 new 3,000-tonne diesel-electric ones.

Canadian Patrol Submarine Project winner also gets long-term maintenance,repair,and overhaul (MRO) work . South Korea's Hanwha Ocean pitching KSS-III-class sub, the Dosan Ahn Chang-ho, already used by South Korean Navy. They plan to deliver first four subs by 2035,whole fleet by 2043.

But analysts warn South Korea faces big challenge — Germany and Canada both NATO members. Could sway Ottawa's choice. Moon Keun-sik,professor at Hanyang University and ex-sub captain,thinks South Korea might edge ahead tech-wise.

Unlike TKMS,which offers only paper design,Hanwha Ocean's bid has real-world experience backing it. With deadline looming,stakes are high in this multi-billion-dollar defense race…

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