Hanwha Ocean Takes an All-or-Nothing Gamble to Win Submarine Contract

Final Push for KSS-III and Industrial Partnership Model at Canadian Defense Exhibition

Over 22,500 Jobs Annually and 94 Billion Dollar GDP Impact

Hanwha Ocean is staking everything on Canada’s submarine project, which is expected to create more than 22,500 jobs annually and generate GDP effects worth 94 billion dollars.

Hanwha Ocean (CEO Kim Heecheol) made a final push to win the next-generation submarine project at CANSEC 2026, Canada’s largest defense industry exhibition. The company is accelerating efforts to appeal to the local government and industry by highlighting not only its submarine technology but also an industrial cooperation blueprint that spans all of Canada.

Hanwha Ocean explained that, at this exhibition, it focused on presenting both the capabilities of the KSS-III, the main submarine of the Republic of Korea Navy, and an industrial cooperation strategy capable of making tangible contributions to the Canadian economy. The company emphasized that it aims to be a partner that grows together with Canada’s industrial ecosystem, not just a supplier of submarines.

At the Hanwha Ocean booth at Canada's 'CANSEC 2026' exhibition, Seungkyun Jung, Vice President and Head of Hanwha Ocean's Special Ship Overseas Business Division (left), is introducing the state-of-the-art KSS-III submarine model to Victor Fedeli, Ontario's Minister of Economic Development.

On the second day of the exhibition, May 28, Victor Fedeli, Minister of Economic Development of Ontario, visited the Hanwha Ocean booth in person. Ontario is known as the heart of Canadian manufacturing. Hanwha Ocean believes that this visit reflects the local interest in its cooperative model with the Automotive Parts Manufacturers’ Association (APMA) of Canada and its strategy for local industry participation.

During the exhibition, representatives from major Canadian defense companies, including Seaspan, Irving Shipbuilding, Babcock Canada, and CAE, also visited the Hanwha Ocean booth. In addition, officials from Invest Nova Scotia and the University of Waterloo joined discussions on various cooperation possibilities, indicating strong interest.

Through its dedicated space introducing the ‘Pan-Canada Economic Strategy’ at the exhibition, Hanwha Ocean provided detailed explanations of its industrial cooperation network and the resulting economic impact. The company emphasized that it has already established cooperative relationships with about 100 Canadian companies and organizations, covering shipbuilding, defense, automotive, advanced manufacturing, energy, and aerospace.

The company stated that, if selected as the contractor for the Canadian submarine project (CPSP), it expects to create over 22,500 jobs annually and induce approximately 94 billion dollars in GDP. Hanwha Ocean actively highlighted that this is not merely a naval vessel acquisition project, but one that can provide new growth momentum for Canada’s manufacturing and defense industries as a whole.

Colton LeBlanc, Minister of Growth and Development of Nova Scotia, also met with representatives from Hanwha Ocean and LIG D&A to discuss cooperation on the CPSP project. Minister LeBlanc noted that the defense and aerospace industries account for about 6% of Nova Scotia’s GDP, expressing high expectations for expanded cooperation with Korean companies.

Flavio Volpe, President of APMA, also stated, “The cooperation between Hanwha and APMA will be a starting point for elevating industrial collaboration between Canada and Korea to the next level,” expressing his commitment to long-term cooperation.

At the Hanwha Ocean booth at the CANSEC 2026 exhibition held in Ottawa, Canada, a Hanwha Ocean representative is introducing the latest submarine model to visitors.

Hanwha Ocean also actively promoted the technological competitiveness of the KSS-III submarine. The KSS-III is the world’s first diesel submarine to apply both Air-Independent Propulsion (AIP) and lithium-ion batteries, providing long-duration underwater capability and outstanding operational flexibility.

At the exhibition, the company also showcased the recent case of the Republic of Korea Navy’s Dosan Ahn Chang-ho submarine sailing approximately 14,000 km from Korea to the Esquimalt Naval Base in Canada. Hanwha Ocean explained that local officials were able to directly observe the KSS-III’s long-range operational capabilities and high operational reliability through this example.

Kim Kyungnyul, Chief of Naval Operations; Lee Yongcheol, Administrator of the Defense Acquisition Program Administration; and Im Kimo, Ambassador of the Republic of Korea to Canada, also visited the exhibition to meet with local political and government figures, lending their support to showcase the Korean defense industry’s capabilities and commitment to cooperation.

Kim Heecheol, CEO of Hanwha Ocean, stated, “This CANSEC 2026 event demonstrated that the project Hanwha Ocean is proposing is not simply about acquiring submarines, but about offering an industrial cooperation model that grows together with Canadian industry. Based on our proven submarine technology and extensive industrial cooperation network, we will become a solid long-term partner contributing to Canada’s security capabilities and economic growth.”

This content was produced with the assistance of AI translation services.