South Korea is pursuing a major submarine contract with Canada, showcasing the country's transformation from defense importer to major arms exporter as geopolitical shifts reshape global weapons markets.
President Lee Jae-myung met with Canadian Prime Minister Mark Carney to discuss bilateral ties ahead of South Korea's bid for Canada's submarine replacement program, the Korea Herald reports. The meeting underscores how Korea's advanced defense industry has become both economic asset and diplomatic tool.
Canada seeks to replace its aging Victoria-class submarines, and Korean shipbuilders are competing against European rivals for the multi-billion-dollar contract. The bid represents Korea's growing ambitions in high-end defense exports and reflects how the Ukraine war has reshuffled global arms markets.
From Importer to Exporter
South Korea's defense industry evolution has been dramatic. For decades, the country imported American and European weapons while developing domestic capabilities. Now, Korean manufacturers export advanced systems globally—tanks to Poland, artillery to Estonia, fighter jets to multiple buyers.
The submarine bid exemplifies this transformation. Korean shipyards, led by Hanwha Ocean (formerly Daewoo Shipbuilding) and HD Hyundai Heavy Industries, build sophisticated diesel-electric submarines incorporating indigenously developed technologies. The KSS-III class submarines feature advanced air-independent propulsion, allowing extended underwater operations.
These capabilities position Korea as credible competitor to traditional submarine exporters like Germany, France, and Sweden. Korean firms offer competitive pricing, proven technology, and rapid delivery—advantages that appeal to buyers facing urgent modernization needs.
The that Korean defense exports reached record levels in 2025, with submarines among the most sought-after products. The industry's success reflects both technical competence and aggressive marketing backed by presidential-level diplomacy.
