Korea steps up push for Canadian submarine deal during Ottawa trade mission visit

Industry Minister Kim Jung-kwan, second from right, listens to Canada's International Trade Minister Maninder Sidhu, third from left, during a meeting on energy security at Lotte Hotel Seoul, Tuesday. Courtesy of Ministry of Trade, Industry and Resources

Korea continued with efforts to persuade Canada to place an order for 12 new patrol submarines worth 60 billion Canadian dollars ($43 billion), as Ottawa dispatched a trade mission to Seoul this week.

Arranging a closed-door meeting Tuesday between Industry Minister Kim Jung-kwan and Canada’s International Trade Minister Maninder Sidhu for discussion on energy security, the Ministry of Trade, Industry and Resources said Kim underscored the importance of the submarine deal in strengthening industrial ties between the two countries in strategic sectors.

According to the ministry, Kim also reiterated Hyundai Motor’s plan to establish hydrogen infrastructure in Canada as an example of bilateral cooperation, while asking for the submarine order in return for Korean investment.

“If Canada’s vast resources are paired with Korea’s manufacturing capabilities in this era of uncertainty, both nations can build a resilient supply chain capable of withstanding global challenges,” Kim said in a press release.

With major energy firms from both nations attending the meeting, the ministers also reportedly discussed ways to ensure a stable supply of resources amid global supply chain disruptions resulting from the war in Iran.

“Kim proposed stronger cooperation in liquefied natural gas, critical minerals and nuclear energy,” a ministry official said.

The same day, Canadian businesspeople stopped by HD Hyundai’s headquarters in Seongnam, Gyeonggi Province.

The company is the parent firm of HD Hyundai Heavy Industries, which formed a consortium with its local rival Hanwha Ocean to compete against Germany’s TKMS in Canada’s submarine procurement project. The preferred bidder is expected to be selected in June.

Hanwha is reportedly holding a separate meeting with members of the trade mission at a hotel in Seoul and attending a reception hosted by the Federation of Korean Industries on Wednesday.

Trade Minister Yeo Han-koo, left, shakes hands with Canada's International Trade Minister Maninder Sidhu, during a meeting on the sidelines of the World Trade Organization's 14th Ministerial Conference in Cameroon, March 28. Courtesy of Ministry of Trade, Industry and Resources

Trade Minister Yeo Han-koo is also scheduled to attend the event for follow-up talks with Sidhu. The two previously met Saturday on the sidelines of the World Trade Organization’s 14th Ministerial Conference in Cameroon.

“Yeo will emphasize that the trade mission’s latest visit to Korea, which came two years after its previous trip in April 2024, marks the first return trip to the same country and reflects both nations’ commitment to deepening industrial cooperation,” the ministry official said.

“The government also plans to reaffirm its support for achieving tangible outcomes in strategic sectors such as defense and automotive industries through high-level communication channels.”