Home > Business > Industry

Hyundai Motor chair joins gov't officials, other senior execs in Canada trip for submarine bid

Published: 26 Jan. 2026, 15:41 Updated: 26 Jan. 2026, 19:35

Hyundai Motor Group Executive Chair Euisun Chung enters the Seoul Gimpo Business Aviation Center in Gangseo District, western Seoul, on Jan. 26 to board a plane to Canada. [YONHAP]

Hyundai Motor Group Executive Chair Euisun Chung left for Canada as a member of a Korean government delegation aimed at strengthening Seoul’s bid for a multibillion-dollar submarine contract. He is expected to discuss potential cooperation on hydrogen-related projects during broader industrial partnership talks.

Chung will be part of a special defense industry envoy formed to support Korea’s bid for Canada’s Patrol Submarine Project (CPSP), which aims to replace the Canadian navy’s aging submarine fleet with up to 12 diesel-powered submarines, government and industry officials said on Monday.

Other members of the delegation include Kang Hoon-sik, the chief of staff to President Lee Jae Myung, Industry Minister Kim Jung-kwan and Defense Acquisition Program Administration administrator Lee Yong-cheol. The group departed from Incheon International Airport earlier on Monday.

The government previously invited companies, including Hyundai Motor, Hanwha Group, HD Hyundai and Korean Air, to join the mission. Chung will be joined by Kim Dong-kwan, the vice chairman of Hanwha Group; Joo Won-ho, the head of HD Hyundai Heavy Industries' naval and medium-sized ships business unit; and other senior executives, officials said.

Presidential Chief of Staff Kang Hoon-sik, center, Industry Minister Kim Jung-kwan, right, and Defense Acquisition Program Administration administrator Lee Yong-cheol depart for Canada at Incheon International Airport on Jan. 26 to discuss defense cooperation, including a submarine project. [NEWS1]

The CPSP carries an estimated shipbuilding price tag of about 20 trillion won ($13.9 billion), with the total value of the Canadian-funded program rising to as much as 60 trillion won when considering 30 years of maintenance, repairs and operations.

In Korea, a joint consortium led by Hanwha Ocean and HD Hyundai Heavy Industries has been short-listed and is competing for the final contract against Germany's ThyssenKrupp Marine Systems.

Canada has reportedly asked both Korea and Germany to offer offset arrangements, including investment and industrial cooperation, as part of the bidding process. Hyundai Motor Group is expected to propose cooperation with Canada on developing a hydrogen ecosystem, according to industry insiders.

Business sources said Canada has also raised the possibility of establishing local production facilities, prompting behind-the-scenes negotiations over investment commitments. But Hyundai Motor already operates manufacturing facilities in North America, including Hyundai Motor Group Metaplant America in the United States, which could limit its appetite for additional large-scale investments.

Canada has also expressed interest in attracting investment in areas such as liquefied natural gas facilities, rare earth mining, small modular reactors and high-speed rail, according to reports. Korea will seek to expand cooperation with Canada at a broader level, Kang said ahead of his departure.

“With defense projects of this scale, there are limits to competing solely on weapons performance or the capabilities of individual companies,” Kang said. “We will meet senior Canadian officials to directly convey our government’s commitment to expanding industrial and security cooperation between the two countries.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NA SANG-HYEON [[email protected]]