The South Korean government and two of its major defense companies

The South Korean government and two of its major defense companies, Hanwha Ocean and Hyundai Heavy Industries, have presented Canada with an unsolicited proposal valued at $20 billion to $24 billion for a submarine and defense deal.

The proposal includes the supply of the latest version of South Korean submarines, the KSS-III, which could be ready by 2035, the Canadian Navy's current deadline for receiving its first new submarine. The South Korean government is eager to strengthen its defense and security ties with Canada, as part of a broader push to diversify its international defense partnerships amidst tensions in its own region and the changing dynamics of global alliances.

The proposal comes at a time when Canada is seeking to upgrade its military capabilities, particularly its submarine fleet. The South Korean companies claim that their offer would not only provide advanced submarine technology but also create jobs and contribute to Canada's industrial base through the establishment of maintenance facilities and potential manufacturing centers. Additionally, Hanwha Aerospace has separately offered to supply the Canadian Army with advanced artillery systems and armored vehicles, which could be delivered quickly and support Canada's military modernization efforts.

The South Korean government's backing of these proposals underscores its desire to enhance military cooperation with Canada, as evidenced by the defense and security partnership signed by former Prime Minister Justin Trudeau and his South Korean counterpart in 2020.

This collaborative approach is seen as beneficial for both nations, offering Canada access to advanced military technology and bolstering its own defense capabilities, while providing South Korea with a new market for its defense products and fostering deeper strategic ties.