Canadian Prime Minister Mark Carney has personally explained the reasoning behind his decision to select Germany's ThyssenKrupp Marine Systems (TKMS) over South Korea's Hanwha Ocean for Canada's next-generation submarine construction project, valued at up to 60 trillion won.

After announcing the final selection of Germany's TKMS as the preferred bidder at the Halifax Naval Base in Nova Scotia on the 6th (local time), Prime Minister Carney stated, "We were fortunate to receive two strong bids, but we chose the platform and partnership that best meets Canada's strategic security and economic interests."

The "strategic security" mentioned by Prime Minister Carney is interpreted as a judgment that expanding defense cooperation with Germany, a fellow NATO member, is more advantageous for Canada in terms of security.

Prime Minister Carney added that the platform from Germany's TKMS is "optimized for Arctic waters and has perfect interoperability with NATO."

However, he also praised Hanwha Ocean, which remained a strong contender until the final stages, stating, "They were excellent," and added, "We maintain the right to designate Hanwha Ocean as the preferred bidder and proceed with negotiations should the current negotiations fail."

Prime Minister Carney also revealed that he had a conversation with President Lee Jae-myung over the past weekend.

[Mark Carney / Prime Minister of Canada (July 6, local time): I am well aware that the disappointment will be significant because the bid proposal from the Korean side was so strong. It was a truly difficult decision to make. We are scheduled to meet in Ankara in 24 hours, and we have also spoken over the weekend.]

He emphasized, "South Korea is an important strategic partner, and the cooperative relationship between our two countries will continue to develop in the future."

This Canadian submarine project is a large-scale endeavor to build up to 12 vessels to replace those nearing retirement. Including ship construction, maintenance, repair, and operational costs over 30 years, the project is valued at up to 60 trillion won.

The South Korean government had been conducting an all-out effort involving both the public and private sectors, including dispatching the Chief of Staff as a special envoy.

President Lee Jae-myung stated on social media, "It is regrettable that we did not achieve the expected result, but we have clearly demonstrated our potential to the international community," and added that the government would provide all possible support for the bold challenges of K-Defense.

Reported by Lee Hyeon-yeong | Video by Lee Da-in | Graphics by Lee Jeong-ju | Produced by SBS Digital News