Canada Considers $20+ Billion Submarine Deal from South Korea

20 May, 2025

Canada is evaluating a major defense proposal from South Korea valued between $20 to $24 billion for the supply of advanced submarines. The offer includes the construction of up to twelve submarines, aimed at strengthening the Royal Canadian Navy’s underwater capabilities. This move is part of Canada’s efforts to modernize its aging Victoria-class submarine fleet and expand its presence in the Indo-Pacific and Arctic regions

The South Korean bid features the DSME-3000, a next-generation diesel-electric attack submarine equipped with advanced sonar, air-independent propulsion systems, and the ability to deploy a variety of weapons. Built by Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, the submarines are designed for extended underwater operations and are already serving in the South Korean Navy. The offer also includes technology transfer, domestic construction options, and long-term support for Canadian shipbuilding and maintenance industries

The proposed deal aligns with Canada's National Shipbuilding Strategy and reflects growing defense cooperation between Canada and South Korea. It offers Canada a cost-effective and proven platform that could be tailored to national requirements, while also boosting local industry through partnership opportunities. The deal would further enhance Canada’s ability to patrol and defend its maritime interests, especially in the increasingly contested Arctic

Canadian defense officials are currently reviewing multiple submarine options from international partners, with the South Korean proposal gaining attention due to its technological sophistication and potential for domestic industrial benefits. If accepted, it would represent one of the largest defense procurements in Canadian history

This proposal comes amid rising global maritime tensions and reflects Canada’s commitment to modernizing its naval forces. Strengthening undersea capabilities is a key priority for Canada’s future defense posture, and this deal with South Korea could significantly shape the country’s strategic position in global naval operations

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