Home > Business > Industry

Presidential chief of staff to meet again with Canadian defense procurement chief for submarine project

Published: 05 Feb. 2026, 20:34 Updated: 05 Feb. 2026, 21:05

Presidential chief of staff Kang Hoon-sik, right, shakes hands with Stephen Fuhr, Canada's secretary of state for defense procurement, in a photo shared on Kang's social media on Jan. 28. [SCREEN CAPTURE]

Presidential chief of staff Kang Hoon-sik will meet again with Stephen Fuhr, Canada’s secretary of state for defense procurement, at the Blue House in central Seoul on Friday, as Korea steps up efforts to secure Canada’s multibillion-dollar submarine project.

The Canadian Patrol Submarine Project (CPSP) carries an estimated price tag of up to 60 trillion won ($41 billion).

The meeting comes just nine days after Kang met Fuhr as a member of President Lee Jae Myung’s special envoy for defense industry cooperation to Canada on Jan. 28.

“Kang invited Fuhr to the Blue House, so he is in Seoul [to listen to] the final pitch from Korean companies,” a government official said during a phone call with the JoongAng Ilbo on Thursday. “This submarine project carries national importance, and the meeting reflects the government’s strong commitment to supporting the bid.”

In a statement released later on Thursday, the Blue House confirmed that Kang is scheduled to meet with Fuhr, who took office after the Mark Carney government created the defense procurement chief post in March last year and now holds significant influence over the outcome of the submarine competition.

Under the CPSP, Canada plans to acquire up to 12 new 3,000-ton diesel submarines. If Korea secures this contract, it would mark the largest single defense export project in the country’s history.

The competition has narrowed to two bidders: a “one-team” consortium formed by Hanwha Ocean and HD Hyundai, and Germany’s Thyssenkrupp Marine Systems (TKMS).

The submarine Jangbogo departs Jinhae Naval Base Command in South Gyeongsang on Nov. 19, 2025, for its final voyage. [NAVY]

Canada will receive final proposals in March and may select a preferred bidder as early as the first half of this year.

During his visit to Korea, Fuhr conducted on-site inspections ahead of the final decision.

After he arrived in the country on Monday, Fuhr toured Hanwha Ocean’s Geoje shipyard in South Gyeongsang and boarded the Jang Yeongsil-class submarine, which is undergoing trials. He praised the vessel’s internal technology during the visit.

On Tuesday, he visited HD Hyundai’s Global Research and Development Center in Seongnam, Gyeonggi.

Before traveling to Korea, Fuhr toured facilities operated by TKMS in Germany in December 2025.

Kang’s decision to meet Fuhr again within a short period reflects Korea’s strong push to secure the contract, analysts said. Observers expect the meeting to underscore the depth of bilateral security cooperation.

Ahead of his trip to Canada, Kang visited the War Memorial of Korea in Yongsan District, central Seoul, on Jan. 25 to lay flowers at a memorial honoring Canadian soldiers killed in the 1950-53 Korean War. He emphasized the two countries' shared history as wartime allies.

After returning from Canada, Kang wrote on Facebook on Jan. 29 that the Canadian government “warmly welcomed a true friend who traveled through heavy snow and extreme cold,” adding that Korea had conveyed its sincerity and done all it could and would now await the outcome.

A launch ceremony for Jang Yeong-sil, the lead vessel of the Changbogo-III Batch-II submarine program, takes place at Hanwha Ocean’s Geoje shipyard in Geoje, South Gyeongsang, on Oct. 22, 2025. [NEWS1]

One source familiar with the matter said Kang received an enthusiastic reception from senior Canadian officials, including Fuhr, during his recent visit.

“Trust in Korea’s submarine technology is already strong, and the possibility of winning the contract is real,” the source said. “However, to overcome Germany’s push, which is backed by NATO ties, Korea will need to present an additional industrial package that appeals to Canada.”

With Canada increasingly embracing a “Buy European” approach and joining European weapons procurement programs, analysts say offset negotiations — which require foreign defense suppliers to offer technology transfers, local production or other economic benefits — will likely determine the outcome.

Canada has reportedly asked Korea to consider building a Hyundai Motor manufacturing plant in the North American country, and Germany has faced similar requests tied to Volkswagen. After touring the Korean submarine, Fuhr said on Monday that the decision would depend on which bidder delivers the greatest economic value to Canada.

Fuhr said Korea and Germany are both automobile manufacturing countries and noted that cooperation in the sector could open the door to broader partnerships beyond defense.

Observers said Hyundai Motor Group Executive Chair Euisun Chung’s decision to join Kang’s trip to Canada reflected the growing emphasis on broader industrial cooperation.

A Navy submarine maneuvers during the Korea Navy fleet review in waters off the coast near Busan on Sept. 26, 2025. [NEWS1]

Hyundai Motor, however, remains cautious about building a full vehicle plant in Canada, as it already operates a large electric vehicle facility in Georgia in the United States.

Chung reportedly proposed hydrogen cooperation as an alternative, suggesting a partnership that combines Canada’s hydropower and natural gas resources with Hyundai’s hydrogen fuel cell technology.

Some in the defense industry question whether that proposal will satisfy Canadian expectations, given that Volkswagen already plans to build an EV battery plant in Canada.

“The challenge is that the Canadian government, hit hard by U.S. steel tariffs, wants an automobile plant that can create jobs immediately,” said a source who requested anonymity.

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 YOON JI-WON [[email protected]]