South Korean President Expresses Disappointment Over Submarine Project Loss to Germany
Quick Look
President Lee Jae Myung expressed disappointment after Canada selected Germany's Thyssenkrupp Marine Systems over a South Korean consortium for a $39.1 billion submarine project, but highlighted South Korea's demonstrated potential and vowed continued government support for its defense industry.
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Why It Matters
South Korea's defense industry, led by companies like Hanwha Ocean and HD Hyundai Heavy Industries, has been seeking to expand its global footprint. This loss to a German competitor in a major Canadian procurement project is a setback but also seen as a validation of their technological capabilities.
SEOUL, July 7 (Yonhap) -- President Lee Jae Myung expressed disappointment Tuesday that Canada chose a German company over a South Korean consortium as the preferred bidder for a multibillion-dollar submarine procurement project but noted it proved South Korea's potential.
Lee posted his reaction on Facebook shortly after Canadian Prime Minister Mark Carney announced that Germany's Thyssenkrupp Marine Systems was chosen for the procurement program valued at up to 60 trillion won (US$39.1 billion), beating the South Korean consortium led by Hanwha Ocean Co. and HD Hyundai Heavy Industries Co.
"Our submarines have proven their excellent performance and technology through square competition with the world's submarine powers," he wrote. "Although we did not get the result we wanted from the Canadian submarine project, I believe we once again showed our potential clearly to the international community."
Lee pledged the government's full support until the day the country's submarines "defend peace and safety in the world's seas," including through research and development, export assistance and stronger cooperation with the international community.
"What is important is that we do not stop and keep going," he wrote. "I am confident today's experience will become a valuable foundation for further advancing our technology and increasing our competitiveness."
The foreign ministry said South Korea respects the Canadian government's decision and will continue efforts to strengthen cooperation with Canada in defense and other areas.
"The bidding process showcased the outstanding performance and technological prowess of our submarines, as well as the value of the industrial cooperation package proposed by our side, which received positive recognition from Canada and industry stakeholders," Lee Moon-bae, deputy spokesperson at the ministry, told reporters.
"We will continue to support the global expansion of South Korea's defense industry and pursue mutually beneficial cooperation with Canada in such areas as defense, the arms industry, energy and critical minerals," he added.
Open Questions
- What specific factors led Canada to choose the German bid?
- What are the next steps for the South Korean consortium?
- Will this impact future defense export opportunities for South Korea?
