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Korea touts job creation with Canadian sub project bid at bilateral economic cooperation forum

Published: 31 Mar. 2026, 17:40 Updated: 01 Apr. 2026, 18:13

SEO JI-EUN
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Maninder Sidhu, Canada’s minister of international trade, delivers a keynote address at the Plenary Session of the Team Canada Mission to Korea, with more than 100 Canadian organizations in attendance, at Lotte Hotel Seoul on March 31. [EMBASSY OF CANADA TO KOREA]

Korea is positioning its bid for Canada's $44 billion submarine program as a long-term industrial engine capable of generating almost half a million jobs across the Canadian economy, officials said Tuesday.

Park Jung-sung, deputy minister for trade at the Ministry of Trade, Industry and Resources, outlined the job projection at the Plenary Session of the Team Canada Mission to Korea, held at Lotte Hotel Seoul. He described the Canadian Patrol Submarine Project as "all-inclusive."

"The Canadian Patrol Submarine project provides a huge momentum because it is all-inclusive, covering energy, steel, space, AI and mobility," Park said. "Korea has committed more than 100 companies and 40 projects, hiring more than 470,000 people in the next 20 years.

"This green momentum cannot be missed, and this will introduce a lot of opportunities for SMEs for both countries," he added.

The Team Canada trade mission, led by Canadian Minister of International Trade Maninder Sidhu, comprises more than 180 representatives from over 100 companies, with a majority from the aerospace and defense sector. Sidhu is set to hold meetings with executives from Hanwha Ocean and HD Hyundai Heavy Industries during the trip.

The KSS-III Batch-II submarine, built by Hanwha Ocean. The Korean shipbuilder has been shortlisted as a final contender for Canada’s $44 billion Canadian Patrol Submarine Project to replace the Royal Canadian Navy's aging Victoria-class fleet. [HANWHA OCEAN]

The two shipbuilders, together known as "Team Korea," are competing against Germany's TKMS for a contract to supply up to 12 diesel-electric submarines, each displacing roughly 3,000 tons. A preferred bidder is expected to be announced as early as June.

Korea's strategy seeks to distinguish its bid through its economic impact at a time when Canadian officials have publicly stated that they will weigh long-term industrial partnerships and labor market contributions alongside technical merit.

Sara Wilshaw, Canada's chief trade commissioner, said the goal is to help small- and medium-sized enterprises on both sides "hire people" by reducing barriers to cross-border innovation.

Sidhu pointed to LG Energy Solution's multibillion-dollar electric vehicle battery plant in Ontario as the model of a partnership "between two middle powers navigating an era of disruption."

"We're not just growing trade numbers; we are building something that lasts — a more resilient, prosperous and secure economic future for both of our countries," said Sidhu.

He also announced plans to reduce Canadian mining permit timelines to two years through a newly established Major Projects Office, framing the move as an invitation for Korean firms to deepen their role in North American supply chains.

The forum also featured a session on AI — a sector in which Canada has a particular stake as the first country to adopt a national AI strategy.

Ivan Zhang, co-founder of the Canadian AI company Cohere, revealed that the firm is already collaborating with Hanwha Ocean to deploy AI agents at its shipyards. The arrangement, Zhang suggested, creates a mutually reinforcing industrial ecosystem rather than a one-off weapons procurement.

"You can go fast alone, but you can go further together with a local partner," Zhang said.

BY SEO JI-EUN [[email protected]]