Three South Korean defense companies, supported by their government, have presented Canada with an unsolicited military upgrade proposal worth up to $25 billion. The package includes advanced submarines, artillery systems, and armored vehicles, aiming to modernize Canada’s aging defense infrastructure. The move comes amid tensions between Canada and the United States, prompting Canadian leaders to consider alternative military partnerships.
According to CBC News, the proposal marks rare cooperation among Hanwha Ocean, Hyundai Heavy Industries, and Hanwha Aerospace. Together, they delivered a joint presentation promising four new submarines by 2035—outpacing Canada’s current plan, which envisions only one operational submarine by that time. The submarine design offered, South Korea’s KSS-III Dosan Ahn Changho-class, meets Canada’s key requirements, including under-ice maneuverability and cruise missile capabilities.
Canada currently operates four Victoria-class submarines, all over two decades old. In 2023, the Trudeau government expressed interest in acquiring 12 new non-nuclear submarines, citing concerns about Arctic readiness and maritime security. The new South Korean subs are reported to be stealthier and more versatile than those in Canada’s existing fleet.
The proposal also includes a $1 billion offer from Hanwha Aerospace to upgrade Canada’s artillery and armored vehicles. South Korean defense firms have gained international recognition for delivering high-quality systems quickly and affordably. The country’s defense sector gained global attention following major arms deals with Poland in 2022, which triggered similar interest from other nations.
South Korean Deputy Defense Minister Hyunki Cho told CBC that the proposal is not just a sales pitch but an effort to deepen long-term defense cooperation. Canadian officials have shown interest, particularly as tensions with the U.S. continue to affect defense procurement strategies. Prime Minister Mark Carney has signaled a shift away from U.S. reliance, including potential withdrawal from the F-35 fighter jet program.
Defense Minister Bill Blair confirmed that Canada is considering alternatives to the F-35. While the first 16 jets may be delivered, the remaining order could be scrapped. Sweden’s Saab Gripen remains under consideration, and South Korea’s KAI F-50 fighter has also been floated as a lower-cost substitute.
Canadian defense analysts say South Korea’s strong production capacity and proven delivery track record offer a compelling alternative to European suppliers, whose defense industries are stretched by the ongoing war in Ukraine. Canadian Global Affairs Institute President Dave Perry noted that the Canadian Armed Forces face critical readiness shortfalls and need solutions that can be delivered quickly.
