SEOUL, South Korea – On a packed bullet train heading towards Seoul, the face of Stephen Fuhr, Canada’s secretary of state for defence procurement, suddenly appeared on monitors in each of the 18 train cars.

In a four-minute news story, Fuhr was shown touring Hanwha’s shipyard in Geoje, along with more than 20 Canadian CEOs along for a trade mission.

Over two days, the delegation visited multiple industrial sites and the Republic of Korea’s (ROK) submarine command base. The event was widely covered by South Korean media, and is an indicator of the importance the Republic has placed on winning the massive contract to build Canada’s next generation of submarines.

The two finalists, Hanwha and Germany’s ThyssenKrupp Marine Systems (TKMS) are facing a deadline of March 2, to submit their proposals.

The Royal Canadian Navy (RCN) wants to purchase 12 new conventional diesel submarines to replace its aging fleet, which will become obsolete by 2035. Of the four Victoria-class submarines the RCN currently owns, only one is operational.

If the federal government decides to purchase a full dozen, the Canadian Patrol Submarine Project could be the biggest military procurement in Canada’s history.

The offer of a torpedo factory

The scale of the deal means that negotiations are occurring at the top levels of government, not just between companies. The federal government is seeking a deal that extends beyond submarines that can bolster other industries targeted by U.S. President Donald Trump’s trade war.

“This sub purchase will come down to cost, timeline and economic benefits to Canada,” said Fuhr in an interview with CTV News, following a tour of Hanwha’s shipyard.

During Fuhr’s week-long visit, the South Koreans sweetened their offer. LIG NEX1, which makes torpedoes for the KSS-III offered to manufacture the weapons in Canada, if Hanwha is selected. The secretary also met with Hyundai officials who demonstrated a range of hydrogen vehicles. But Fuhr’s office says no concrete plans for Canada were detailed in those meetings.

Prior to the secretary’s arrival, the two governments signed a non-binding agreement to pursue closer industrial cooperation in strategic sectors such as auto and battery manufacturing, critical minerals and artificial intelligence.

Fuhr said the federal government is prepared to act quickly, not only because the navy needs the boats, but Canadians need the jobs that will come with building the infrastructure that supports the submarines, such as the construction of dry docks on both coasts.

“We want to start creating jobs. It’ll mean thousands (of jobs). We want to make sure that we have the infrastructure in place, so when the sub arrives, it’s ready to go.”

Crossing the Pacific to Canada

While in South Korea, the delegation saw four KSS-III submarines in various states. The two located at Hanwha’s shipyard in Geoje were either under construction, or in the water awaiting final certification to be turned over to the South Korean navy.

The other two vessels were docked at the Republic of Korea (ROK) Submarine Command Centre at Jinhae naval base. Submariners were on board one vessel, sitting at their stations as the Canadians climbed down the ladder to invade their workspace and peek into their sleeping quarters. The remaining 3000 tonne boat was in dry dock, undergoing maintenance for what could be its most important mission.

As the Canadian executives walked underneath the hull, Korean naval officers excitedly told them they were planning to set sail across the Pacific to show off the KSS-III in Canadian waters. The three-year-old submarine is expected to surface off the coast of British Columbia at the end of May.

Glenn Copeland, the newly hired CEO of subsidiary, Hanwha Defence Canada, says his company is well positioned to win the contract.

“We have a submarine in the water. It is fully operational. You can see it. You can feel it, you can touch it,” said Copeland, a former senior officer with the RCN, who also worked at Lockheed Martin.

Robotic technology

The tour of both industrial and military sites was choreographed to emphasize South Korea’s speed and operational capability. It takes approximately six years to build a submarine. Hanwha’s pitch includes delivering four submarines by 2035 and the full fleet of 12 by 2042.

The speed at which Hanwha can build is made possible through its automated production line. The shipyard which employs 31,000 people is able to produce 45 commercial and naval vessels in a year. Robot welders are watched over by human supervisors holding tablets, programming their every move. Some of the robots are the size of a Roomba, others the height of a high school locker. Tour guides said that only 10 per cent of the welding at Hanwha is done by human hands.

Hanwha says if Canada signs a deal this year, it can deliver its first sub in 2032, three years earlier than TKMS, allowing the RCN to save at least a billion dollars in annual maintenance costs by retiring its aging Victoria-class subs earlier.

Hanwha’s submarines will cost about $2 billion dollars each to build, but the bulk of the contract involves long term work like maintenance, repair and overhaul, which will be worth tens of billions of dollars over at least three decades

“100 per cent of the submarine’s capabilities will be maintained in Canada,” Copeland says.

Auto sector assistance

The federal government has been clear that it wants a proposal that comes with industrial benefits that can offset the pain felt in sectors hit hard by tariffs such as steel, aluminium and autos.

Hanwha has already offered to invest up to $345 million dollars in Algoma Steel to help it build a steel beam factory. The company has also discussed the possibility of producing its K-9 Howitzer armoured vehicles in Canada as part of the submarine deal.

“The manufacturing automated lines we have now (in Changwon), we can take that from here and use the technology we have and implement it in Canada for the development of these vehicles,” Copeland said.

In 2024, Hanwha opened a factory outside Melbourne, Australia, after Ford and Toyota shuttered their auto plants in the region.

It took Hanwha two years to build the Australian facility, which Copeland says now employs approximately 1,000 people. The numbers have piqued the federal government’s interest.

“We’re looking at it. Given the moment we’re in - everything’s on the table,” said Fuhr, who was given an opportunity to ride in the turret of the K-9 as it barreled down a track at speeds of up to 65 km/h.

Training support

During last year’s Asia Pacific Economic Cooperation Summit in Gyeongju, Prime Minister Mark Carney and President Lee Jae Myung signed the Canada-Korea Security and Defense Cooperation Partnership. The agreement entrenches a commitment between the two countries for deeper military co-operation and interoperability to deal with mutual threats.

Through a translator, Republic of Korea’s Commander of submarine forces, Kim Tae Hoon says the establishment of the strategic partnership would allow the two countries to form a deeper bond than just “buyer-seller.”

The two navies could “create an integrated framework for operations, training, maintenance and ship operation and share information,” Kim said.

The ROK says it will support a training program for four Canadian submarine crews, or approximately 200 personnel. It’s also offering to establish a cutting-edge training facility with a tactical simulator at its Jinhae naval base for the Royal Canadian Navy.

The Republic’s top naval commander also points out that Canada holds a special place as a valued friend of South Korea.

“We will not forget that Canada sent 26,000 personnel to support us during the Korean War. Our people always remember Canada’s support with deep gratitude,” Kim said.