Korea ramps up bid for Canada's $44 bil. submarine deal

Lee Yong-cheol, minister of the Defense Acquisition Program Administration (DAPA), speaks during a press briefing with reporters at MND Convention center in Yongsan, Seoul, Thursday. Courtesy of DAPA

Korea is ramping up efforts to secure Canada’s submarine procurement project, with Defense Acquisition Program Administration (DAPA) Minister Lee Yong-cheol saying the outcome remains too close to call.

“It is difficult to say at this point whether we will win or lose,” Lee said during a press briefing at MND Center in Yongsan, Seoul, Thursday.

Still, he emphasized the strategic importance of the project, noting that a successful bid could significantly elevate Korea’s position in the global defense market.

“If we secure the deal, it could fundamentally change the landscape of Korea’s defense industry,” he said.

Canada is seeking to replace its aging submarine fleet with up to 12 next-generation vessels under a project estimated at around 60 billion Canadian dollars ($43.7 billion).

Korea and Germany have emerged as the leading contenders, with Berlin proposing an industrial package that combines submarine sales with automotive and battery investments, in line with Ottawa’s push to attract broader manufacturing investment alongside defense contracts.

The Canadian submarine program is widely regarded as a key test of Korea’s ambition to expand its presence in North America and move closer to its goal of becoming one of the world’s leading defense exporters.

Lee said the government is taking a coordinated approach involving multiple ministries and industry players to support major overseas defense bids.

“This is not something a single agency can handle alone,” he said. “We are mobilizing all available resources at the national level.”

He added that Canada is placing strong emphasis on long-term operational capability and technology transfer, which makes the competition more complex than a simple price-based bid.

“This is not just about delivering platforms,” he said. “It is about building a long-term partnership.”

In addition to the submarine bid, Lee also addressed broader challenges of adapting to rapidly changing battlefield conditions, particularly in the area of drone warfare.

“There is a gap between the urgency we recognize today and the time required to field systems through formal acquisition processes,” he said.

He noted that high-performance drones remain heavily dependent on foreign components, particularly from the United States.

“Full localization is difficult, and as supplier countries prioritize their own needs, securing key components becomes more challenging,” he said.

Lee also highlighted capability gaps, pointing out that Korea’s current drone assets are primarily focused on reconnaissance.

“If we consider wartime scenarios, surveillance alone is not sufficient,” he said.

To address these issues, he said, the government is considering a combination of accelerated procurement and interim deployment, while continuing longer-term development efforts.

Regarding the government’s plan to train 500,000 drone operators, Lee said the initiative focuses on training and industrial development rather than immediate combat capability.

“It’s more about building a broader ecosystem and workforce,” he said.

He emphasized that, although the outcome of the Canadian submarine bid is still uncertain, Korea is now being considered as a serious potential partner.

“We are not yet in a position to declare success,” he added. “But we are clearly in the race.”