For Korean firms to win Canada's sub contract, Seoul should buy choppers, experts say
Published: 19 Sep. 2025, 17:58
![A CH-47 Chinook helicopter, rear, modified by Canada’s Coulson Aviation for firefighting and deployed to battle wildfires in Australia, flies with a Bell 412EP helicopter operated by the Australian government. [COULSON]](https://koreajoongangdaily.joins.com/data/photo/2025/09/19/02288023-8f1d-407c-992a-c24b1e9722fc.jpg)
A CH-47 Chinook helicopter, rear, modified by Canada’s Coulson Aviation for firefighting and deployed to battle wildfires in Australia, flies with a Bell 412EP helicopter operated by the Australian government. [COULSON]
Korea’s two largest shipbuilders are in the running for Canada’s multibillion-dollar Canadian Patrol Submarine Project (CPSP), but officials say the winner will likely be decided not in the shipyard, but at the negotiating table.
To outmaneuver German rival Thyssenkrupp Marine Systems, Korea must match the contract value with a mix of technology transfers and Canadian defense procurement, according to analysts — a strategy that would bolster the bid by Hanwha Ocean and HD Hyundai Heavy Industries.
The government is now reviewing possible Canadian-made weapons and equipment to include in the offset package, according to industry insiders on Friday.
The CPSP calls for building as many as 12 submarines at a cost of about 20 trillion won ($14.3 billion), with maintenance, repair and overhaul costs expected to reach another 40 trillion won over the next 30 years. Only the construction cost is subject to offset obligations.
That means Seoul must present a plan for technology transfer or purchases worth roughly 20 trillion won.
“Technology transfer from Hanwha Ocean will be the cornerstone of the offset deal, but meeting the entire requirement through technology transfer alone is unrealistic,” one industry source said. “Korea must present a plan to buy Canadian-made weapons or equipment to gain a competitive edge over Thyssenkrupp.”
![This photo, provided by Hanwha Ocean on Aug. 26, shows a Jangbogo-III Batch-2 submarine. [HANWHA OCEAN]](https://koreajoongangdaily.joins.com/data/photo/2025/09/19/aa811c80-d33f-468c-90b2-5a80dc7af85f.jpg)
This photo, provided by Hanwha Ocean on Aug. 26, shows a Jangbogo-III Batch-2 submarine. [HANWHA OCEAN]
Ottawa has identified 17 key industrial capabilities that qualify for offsets, including civilian and military aircraft and parts, naval vessels such as patrol ships, military vehicles like armored carriers and combat systems such as radars. Industry experts say aircraft and aircraft parts stand out as attractive candidates, given Canada’s strength in that sector and the practical benefits for Korea.
Pratt & Whitney Canada is a global leader in small jet engines, while Bombardier is expanding its presence in the ultra-long-range business jet market with the Global 8000.
Some experts also suggest buying Canada's specialized firefighting helicopters as part of the offset plan. Canada excels at converting military heavy-lift helicopters like the CH-47 Chinook for firefighting use.
A converted Chinook from Canada's Coulson can carry 11,300 liters (2,985 gallons) of water, far exceeding the 8,000-liter capacity of the Sikorsky S-64 currently operated by Korea's National Fire Agency. Coulson has sold four of the converted helicopters to the United States and one to Australia. Each conversion costs about 25 billion won, roughly half the price of a new helicopter.
Korea’s National Fire Agency operated 50 firefighting helicopters as of April, but 14 are scheduled to be decommissioned next year due to aging. Converted helicopters could be ready for service within six months, making them an attractive option for wildfire response.
“Introducing firefighting helicopters could be an offset plan that combines both practicality and cost-effectiveness,” said Kim Ki-won, a professor of military studies at Daekyeung University.
“Canada is moving quickly to select a final contractor next year, so the Korean government should actively propose offset options during the [Asia-Pacific Economic Cooperation] Summit in Gyeongju at the end of October,” he said.
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 KIM HYO-SEONG [[email protected]]
with the Korea JoongAng Daily
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