‘Special Envoy for Strategic Economic Cooperation’ Kang Hoon-Sik, Chief of Staff to the President, speaks to reporters before departing for Canada through Incheon International Airport on the 26th. Yonhap News

Presidential Chief of Staff Kang Hoon-Sik will depart for Canada on the morning of the 26th. Departing as Special Envoy for Strategic Economic Cooperation, Kang is scheduled to discuss defense-industry cooperation, including the submarine program, with Canadian government officials together with Minister of Trade, Industry and Energy Kim Jeong-Kwan, Defense Acquisition Program Administration Commissioner Lee Yong-Chul, and others.

At Incheon International Airport that day, Kang told reporters, “A large-scale defense industry deal like the current Canada submarine program has limits if one tries to compete only on weapon performance or the capabilities of individual companies,” and “The submarine contract competition has been narrowed down to South Korea and Germany. We judge the situation to be not easy.”

Kang said, “This submarine order is among the largest ongoing defense-industry projects,” and “We estimate the domestic production-inducing effect alone at no less than 40 trillion won, and if we win the order, more than 300 partner companies will have work and we expect the creation of over 20,000 jobs.”

Hyundai Motor Group Chairman Chung Euisun will also join the government special envoy delegation. The delegation requested participation from Hyundai Motor Group, Hanwha, HD Hyundai, and Korean Air. Joining Chung are Hanwha Group Vice Chairman Kim Dong-Kwan and Joo Won-Ho, President of the Naval·Special Ship Business Unit at HD Hyundai Heavy Industries, among others.

South Korea is competing with Germany for the Canadian patrol submarine program. This project is a large-scale program to build up to 12 diesel submarines; when including construction costs (up to 20 trillion won) and 30 years of maintenance·repair·operations (MRO) after induction, the total scale is estimated at up to 60 trillion won. A Hanwha Ocean-HD Hyundai Heavy Industries One Team consortium and the German firm ThyssenKrupp Marine Systems (TKMS) have made the shortlist (qualified candidates) and are in a final contest ahead of an announcement expected in June this year.