Korea, Canada hold industrial cooperation forum amid Seoul's submarine bid

Industry Minister Kim Jung-kwan, right, the presidential chief of staff who also serves as a special envoy for strategic cooperation Kang Hoon-sik, center, and Minister of Defense Acquisition Program Administration Lee Yong-cheol, speak ahead of their departure for Canada at Incheon International Airport, Monday. Yonhap

Korea has held a joint industrial cooperation forum with Canada, Seoul's industry ministry said Tuesday, a move apparently aimed at supporting the country's bid to win Canada's major submarine project.

The Ministry of Trade, Industry and Resources held the Korea-Canada industrial cooperation forum in Toronto on Monday (local time), promoting bilateral collaboration in future mobility, defense, space, artificial intelligence (AI) and other strategic industries.

The automobile industry is known to be a key area where Canada wants offset agreements with foreign partners, such as Korea.

An offset agreement refers to a deal where a seller agrees to provide industrial benefits, such as technology transfer, to the buyer's country as part of a broader contract.

An offset agreement is reportedly one of the key factors the Canadian government is considering for selecting the winner of its submarine program.

Major Korean shipbuilder Hanwha Ocean is vying for the estimated 60 trillion-won ($41.4 billion) project after being selected as one of two final contenders, alongside Germany's Thyssenkrupp Marine Systems (TKMS).

To support the bid, the Korean government sent a special delegation, led by presidential chief of staff Kang Hoon-sik, to Canada on Monday. The delegation includes Industry Minister Kim Jung-kwan and Minister of Defense Acquisition Program Administration Lee Yong-cheol.

During the forum, Korean and Canadian companies signed six memorandums of understanding (MOUs) for cooperation in major industries, according to the ministry.

The MOUs include one between Hanwha Ocean and Algoma Steel for collaboration in the steel industry, low Earth orbit satellite cooperation deals among Korea's Hanwha Systems and Canada's Telesat and MDA, and a trilateral AI cooperation agreement among Hanwha Ocean, Hanwha Systems and Cohere.

A business roundtable event also took place during the forum, bringing together chief executive-level officials of 12 Korean firms and nine Canadian firms to discuss opportunities to expand the two countries' cooperation in advanced industries, the ministry said.

"Korean companies already regard Canada as a reliable key partner, and expanding bilateral cooperation will help both countries strengthen their supply chain resilience, create more jobs and enhance their global competitiveness," the industry minister said in a press release.