Seoul: Industry Minister Kim Jung-kwan has emphasized South Korea's competitive position in the race to secure Canada's significant submarine project, citing the nation's manufacturing expertise and potential contributions to Canada's automotive industry.
According to Yonhap News Agency, Kim addressed the media during a press conference on Wednesday, as South Korea anticipates Canada's forthcoming announcement regarding the preferred bidder for the approximately 60 trillion-won (US$40 billion) initiative to construct up to 12 new conventionally powered submarines. This announcement is expected late next month.
The Korean consortium, led by Hanwha Ocean Co. and HD Hyundai Heavy Industries Co., is one of the two final contenders for this major project, competing against Germany's Thyssenkrupp Marine Systems. Kim pointed out that South Korea is ready to provide its KSS-? class submarines, a proven operational model, whereas Germany is still in the design phase for its submarine offer to Canada. He highlighted that the Korean submarine boasts superior features and cost-effectiveness.
Recently, the 3,000-ton ROKS Dosan Ahn Chang-ho, a KSS-? class vessel, arrived at a Canadian port for joint exercises with the Royal Canadian Navy, having traveled approximately 14,000 kilometers across the Pacific Ocean. This demonstrated the Korean naval submarine's capability for extended missions, a crucial feature for Canada's navy, which must patrol extensive areas of the Pacific, Atlantic, and Arctic oceans.
Kim further noted that South Korea holds a strategic advantage over Germany in terms of broader industrial cooperation. Major South Korean companies, such as Hyundai Motor Co. and Hanwha Group, have proposed initiatives involving the creation of a hydrogen mobility ecosystem and the acquisition of military vehicles for Canada.
"When I visited Canada earlier in May to meet my Canadian counterpart, Melanie Joly, she said she is not supposed to hold a meeting with me because of a fairness issue, but she did, and the meeting itself is a message," Kim stated, expressing cautious optimism about securing the Canadian submarine deal.
However, he warned against complacency, acknowledging that Canada, as a NATO member, might opt for a strategic partnership with its long-standing European ally. Kim also commented on the ongoing discussions about South Korea's planned investment in the United States under the bilateral trade agreement finalized last year. He noted that the timeline for announcing the first project remains uncertain, as the commercial viability of potential projects is still under assessment.
Kim remarked that negotiations with the U.S. are progressing constructively, in contrast to the tension reflected in former President Donald Trump's social media post earlier this year. Trump had threatened to increase reciprocal tariffs on Korean goods due to delays in Korea's legislative process needed for implementing the Korea-U.S. trade agreement, under which Korea agreed to invest a total of $350 billion in the U.S.
Economically, Kim projected that South Korea's exports would surpass $900 billion this year, a milestone for the nation. Last year, Korea's exports reached over $700 billion, driven by robust semiconductor sales. In the first four months of this year, exports totaled $306.5 billion, setting a record for the period.
Kim emphasized that while semiconductors are a significant driver, exports in other sectors have also increased by 13 to 15 percent. The government aims to maintain this export momentum to position South Korea as the world's fifth-largest exporter.
Regarding the resolution of the wage conflict between Samsung Electronics Co.'s labor and management, Kim welcomed the recent agreement. He noted that this episode could either hinder or propel the company forward, depending on how it navigates the semiconductor sector's current supercycle. He expressed his hope that Samsung would emerge as a "true global leader" following the resolution of the wage dispute.
Unionized workers at Samsung recently voted to approve the wage deal, which includes a substantial bonus package for chip workers, ending a prolonged deadlock over the distribution of profits from the global artificial intelligence boom.