Hanwha Ocean has failed to secure the Canadian Patrol Submarine Project (CPSP).

Canadian Prime Minister Mark Carney announced on July 6 (local time) at the Halifax Naval Base in Nova Scotia that Germany's ThyssenKrupp Marine Systems (TKMS) has been selected as the preferred bidder for the CPSP.

"Should negotiations (with TKMS) fail, Canada reserves the right to designate Hanwha Ocean as the primary supplier and proceed with negotiations with them," Prime Minister Carney explained.

He added, "Both the platforms from TKMS and Hanwha met the demanding requirements of the Royal Canadian Navy," emphasizing that the competition was extremely close until the final stages.

He noted that the decision was based on selecting a platform and partnership that satisfies both Canada's strategic security and economic interests, suggesting that the decision took into account not only the submarines themselves but also their economic impact.

Regarding economic benefits, Prime Minister Carney added, "Under the terms of the contract, an amount equivalent to 100% of the investment will be reinvested within Canada."

He further explained that TKMS proposed allocating a portion of the submarine orders previously placed by the German and Norwegian navies to Canada first, which will allow Canada to receive its first four submarines as early as 2034, ahead of the original schedule.

He also highlighted that TKMS supplies one-third of the submarines used by NATO (North Atlantic Treaty Organization) members.

Prime Minister Carney drew attention by emphasizing the ongoing partnership with South Korea during his announcement.

"I had a long and friendly conversation with President Lee Jae-myung over the weekend and discussed this matter," he said. "As we are scheduled to meet in Ankara, Türkiye (where the NATO summit will be held) in 24 hours, we have promised to discuss other strategic issues."

He added, "I understand South Korea's disappointment," while stressing that "there are many other areas where Canada and South Korea cooperate, and South Korea remains an important strategic partner for Canada."

In particular, when asked if this choice signaled a retreat from Canada's Indo-Pacific strategy, he firmly stated, "Absolutely not."

The project, which involves building 12 submarines and providing maintenance, repair, and operations for 30 years, is valued at up to 60 trillion won.

South Korea had launched an all-out joint effort between the government and the private sector to win the bid, including deploying the ROKS Dosan Ahn Changho submarine to Canada, but failed to secure the contract.

Hanwha Ocean had proposed delivering the first submarine by 2032, emphasizing its ability to guarantee a fast delivery schedule, and promised to create approximately 70 billion Canadian dollars (about 75 trillion won) in economic opportunities by 2044. However, it could not overcome the alliance-based front formed by Germany and Norway, which emphasized their NATO ties.

(Photo: Provided by the Navy, Yonhap News)