South Korea's Submarine Bid Boosts Global Defence Standing Despite Loss to Germany

South Korea may have lost Canada’s multibillion-dollar submarine order, but analysts say its close-run contest with Germany has handed Seoul a different prize: proof that it can challenge one of the world’s traditional undersea warfare powers on a stage watched closely by defence buyers.

Canada chose Germany’s Thyssenkrupp Marine Systems (TKMS) as the preferred bidder for a programme worth about US$40 billion to build up to 12 diesel-electric submarines, along with long-term maintenance and support.

“I am pleased to announce that Canada has selected TKMS as the preferred supplier for Canada’s patrol submarine project,” Prime Minister Mark Carney said on Monday.

If negotiations with TKMS failed, Canada reserved the right to go to “reserve supplier” Hanwha Ocean and begin negotiations with the South Korean consortium, he added.

Military experts said South Korea’s performance had reinforced its growing reputation as a serious contender in the global submarine market, with the close contest suggesting its bid was competitive even as broader geopolitical considerations appeared to favour Germany.

Moon Keun-sik, an adjunct professor at Hanyang University’s Graduate School of Public Policy, said South Korea showed a competitive edge. “With regard to performance and cost, Canadian authorities expressed satisfaction,” the naval expert said.