On March 9, Trade, Industry and Energy Minister Kim Jeong-gwan said he confirmed with the Canadian government that it has no plan to split the Canadian Patrol Submarine Project (CPSP) contract into a 6+6 order.
Speaking at a full session of the National Assembly’s Committee on Industry, Trade, Resources and SMEs, Kim was responding to People Power Party lawmaker Seo Il-jun, who cited media reports that Ottawa would split the contract — six boats to Germany and six to Korea. Kim said there is no such plan.
\"I raised that question during a visit to Canada and was told there is no such plan at this time,\" Kim said.
The CPSP, valued at up to 60 trillion KRW (about $402 million), is a major program to build as many as 12 diesel-electric submarines to replace four Victoria-class boats slated to retire in the mid-2030s.
A South Korean consortium of Hanwha Ocean and HD Hyundai Heavy Industries is competing against Germany’s TKMS in the final round. A winner could be named as early as June, after both sides reportedly submitted final proposals.
Local outlets, citing unnamed government sources, recently reported Ottawa is weighing a split award — six subs to Hanwha and six to TKMS.
As part of efforts to shore up its manufacturing base, Canada has reportedly sought offset investments in the auto sector: asking Korea for a Hyundai plant and proposing additional Volkswagen facilities from Germany.
On those proposed conditions, Kim said Seoul is developing industrial cooperation measures and coordinating its response. He added that Ottawa had given \"relatively positive\" feedback on Korea’s proposals.
Pressed on whether Canada specifically requested a car factory, he said such requests have come, directly or indirectly.
On other possible cooperation areas, including defense, Kim said Ottawa is evaluating which package — defense, industrial or combined — offers the best overall value.
On South Korean companies’ chances of winning CPSP work, Kim said Seoul will not prejudge the result and is doing its utmost.
Ahn Ok-hee reporter ahnoh05@hankyung.com
