Canada’s secretary of state for defense procurement visits Hanwha Ocean shipyard in South Korea

Today, Hanwha Ocean was extremely pleased to host the Honourable Stephen Fuhr, Canada’s Secretary of State for Defence Procurement, and a delegation of more than 20 Canadian companies, including partners such as Algoma Steel, MDA Space, Telesat, Ontario Shipyards, Irving Shipbuilding, Seaspan Shipyards, Davie, Gastops, Hepburn, Boreal Energy, CAE, Babcock Canada and L3 Harris Canada, at its shipyard in Geoje, South Korea.  

During the visit, Secretary of State Fuhr and members of the Canadian delegation toured one of the largest and most advanced shipbuilding facilities in the world, including the active and highly automated production line for the KSS-III submarine. Mr. Fuhr also boarded and toured the completed and in-the-water KSS-III that was launched for the Republic of Korea Navy in October 2025 — the exact same submarine that Hanwha is proposing for the Canadian Patrol Submarine Project (CPSP).

The visit provided Hanwha Ocean representatives with the opportunity to highlight the capabilities of the KSS-III submarine as a proven, in-service and in active production platform that meets and exceeds all requirements for CPSP, including superior underwater surveillance capability and deployability in the Arctic with extended range and endurance that will provide stealth and persistence to ensure that Canada can protect its sovereignty in all 3 of its oceans.

The Canadian delegation also visited the Republic of Korea Navy Submarine Force Command base. Here they met with the Korean Navy’s Chief of Naval Operations and other senior submarine officers and toured an in-service KSS-III submarine, as well as the submarine training centre and maintenance, repair, and overhaul facility. It is here that Royal Canadian Navy sailors would train alongside the ROK Navy while Canada’s submarines are being constructed and where Canada’s submarines could receive maintenance and support while deployed in the Indo-Pacific region.

Importantly, the KSS-III submarine is the lowest-risk and fastest path for Canada to maintain and enhance its submarine capability. Hanwha is able to deliver four KSS-III submarines to fully replace Canada’s current Victoria Class fleet before 2035, if on contract in 2026. The additional 8 submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 submarines will be delivered to Canada by 2043. No other option can come anywhere close to this delivery schedule.

Hanwha’s speed of delivery, compared to other options, also means that job creation and economic benefits for Canadian workers and companies from the CPSP will start to flow immediately upon contract award. 

Hanwha further discussed that the Korean value proposition extends beyond acquisition of a submarine platform, positioning CPSP as a generational opportunity to deepen Canada’s relationships in the Indo-Pacific region. Hanwha emphasized its commitment to establishing partnerships with the Government of Canada and Canadian industry in range of strategic sectors, including shipbuilding, defense, space, aerospace, sustainable energy, critical minerals, advanced manufacturing, leading-edge technology and other areas that will create jobs and economic growth across Canada and enhance cooperation, partnership and supply chains between Canada and South Korea. 

An analysis by KPMG released earlier this month forecast that Hanwha’s investments associated with the CPSP will support more than 200,000 person-years of employment across Canada between 2026 and 2040, equating to average annual job creation of approximately 15,000 jobs.

Recently announced key industrial cooperation activities noted during the visit include:

• Steel investment: A $345 million investment in Algoma Steel’s facilities to procure made-in-Canada steel and improve domestic production capabilities.
• AI & Smart systems: Multilateral MOUs with Canadian AI leader Cohere and Hanwha Systems to jointly develop AI technologies for maritime applications, and investment in PV Labs for advanced targeting systems with global export potential.
• Space systems: Partnerships with MDA Space and Telesat in the areas of advanced satellite technologies and next-generation sovereign satellite connectivity solutions and user terminals.
• Sovereign sustainment partners: Partnerships with Babcock Canada, PCL Construction, and CAE to ensure readiness and a low-risk transition.

“The people of the Republic of Korea hold deep gratitude toward Canada, which demonstrated its commitment by deploying the third-largest contingent during the Korean War. Republic of Korea submarines, whose performance has already been recognized in the global market, have been thoroughly validated across diverse undersea environments, enabling them to conduct flawless operations even in Canada’s extreme cold and Arctic conditions. To address Canada’s urgent force-modernization needs, the Republic of Korea Navy will ensure strict adherence to delivery schedules through rapid and precise construction, and will continue to provide comprehensive post-delivery logistics support — including crew training and the sharing of maintenance infrastructure — to sustain the strong trust between our two nations.”

Admiral Kang Dong-gil, Chief of Naval Operations, Republic of Korea Navy

“Hanwha will serve as a coordinating and driving force to ensure that support from the Government of the Republic of Korea is closely aligned with corporate-level efforts, thereby providing tangible support for Canada’s defense autonomy. Hanwha Ocean and the Hanwha Group are committed to being a trusted industry partner for Canada.”

Hee Cheul Kim, CEO, Hanwha Ocean

“It was a great pleasure to host Secretary of State Fuhr at our shipyard today and show him the proven, in-service and in-production KSS-III submarine that we feel is the best submarine for the Canadian Patrol Submarine Project. Equally important was our discussion on the economic benefits we plan to bring to Canada as part of this project as well as how Canada and South Korea can enhance their relationship in a number of areas that are of strategic importance to both nations.”

Charlie SC Eoh, President of Naval Ship Business, Hanwha Ocean

“Algoma Steel is proud to have accompanied Secretary of State Fuhr on this important visit to the Hanwha shipyard in Geoje, South Korea. Our strategic arrangement with Hanwha Ocean is a foundational step in Algoma’s diversification strategy. Algoma is focused on becoming Canada’s leading sustainable steelmaker anda key supplier for defense priorities, including the Canadian Patrol Submarine Project. We applaud the Government of Canada’s support for policies that strengthen domestic manufacturing to build Canada Strong."

Rajat Marwah, Chief Executive Officer, Algoma Steel

“Irving Shipbuilding and Fleetway are pleased to be participating in the Canadian trade delegation visit to Korea, led by the Secretary of State for Defence Procurement, the Honourable Stephen Fuhr. This visit provides an opportunity to understand our role in maximizing the success of the Canadian Patrol Submarine Program. We believe our learnings and achievements under the National Shipbuilding Strategy should be leveraged as Canada acquires and sustains a new combatant submarine fleet.”

Jean-François Séguin, Vice President, Communications and Government Relations, Irving Shipbuilding 

"Ontario Shipyards is proud to join Secretary of State Fuhr and the Canadian delegation as we deepen industrial cooperation that can deliver real capability and jobs at home in Canada. Building sovereign defense capability means having a robust Canadian shipbuilding industry capable of efficient construction and sustainment. We’re excited to explore how our facilities and workforce can leverage the impressive shipbuilding experience and capability on display at Hanwha's Geoje Shipyard."

Ted Kirkpatrick, Vice-President of Business Development and Government Relations, Ontario Shipyards

Hanwha Ocean

Hanwha Ocean is a leading global shipbuilder with more than four decades of experience in complex naval and commercial shipbuilding programs. Supported by its large-scale, integrated shipyard in Geoje, South Korea that spans 5-square kilometers and has more than 31,000 employees, the company combines proven industrial capacity with operational experience to deliver modern, in-service naval platforms backed by a resilient through-life support model.

Since its establishment in 1973, Hanwha Ocean has delivered more than 1,400 vessels worldwide, and has built deep expertise in the design, construction, and sustainment of submarines and surface combatants for the Republic of Korea Navy. The company builds approximately 45 commercial and naval ships each year.

Hanwha Group, a Fortune 500 company, with more than 100,000 employees and 91 subsidiaries globally, is the Republic of Korea’s leading business group in the areas of defense, energy & ocean solutions, aerospace & mechatronics, finance, and retail & services.

For more information, visit: www.hanwhaocean.com

KSS-III Canadian Patrol Submarine

The KSS-III Canadian Patrol Submarine (KSS-III CPS) is South Korea’s latest evolution in conventional submarine technology—indigenously designed and constructed through decades of spiral development of a modern, conventional, ocean-going submarine. Over the last four decades, Hanwha Ocean has continued to evolve a proven MOTS submarine design culminating with the latest batch of the KSS submarine fleet.

Equipped with Lithium-ion batteries and an Air Independent Propulsion (AIP) system, the KSS-III CPS offers the longest submerged endurance among conventional submarines in service – exceeding 7,000 nautical miles. It is outfitted with both a state-of-the-art sonar system and acoustic tiles developed in Korea, offering outstanding target detection capability and advanced stealth performance. The platform is fully optimized for Anti-Submarine Warfare, Anti-Surface Warfare, Intelligence, Surveillance and Reconnaissance (ISR), Minelaying, and Special Operations Forces (SOF) support.

The KSS-III is recognized as the only proven, in-service submarine platform capable of fully supporting Canada’s ‘Three Ocean Strategy’ — ensuring operational reach, surveillance, and deterrence across the Pacific, Atlantic, and Arctic Oceans.

KSS-III is not an export-only model—it is the same class of submarine actively operated by the Republic of Korea Navy in real-world conditions. This ensures Canada will benefit from a proven platform, backed by an established supply chain and validated operational and maintenance data throughout the 30+ years of in-service support (ISS).

The KSS-III is the backbone of the ROK Navy submarine force. Acquisition of the KSS-III would allow Canada to be a member of the international KSS-III User Group which consists of a growing number of nations.

For more information, visit: www.kss-iii.ca

Hanwha Canadian partners

Hanwha Ocean is committed to establishing a robust and long-term presence in Canada that will create jobs and economic growth, accelerate Canada’s domestic defense capabilities, and enhance cooperation and partnership between Canada and South Korea in a variety of strategic industrial areas.

Hanwha has teaming agreements and MOUs in place with more than a dozen Canadian companies, including, Algoma Steel, Babcock Canada, Blackberry, CAE, Cohere, Curtiss-Wright Indal Technologies, Des Nedhe Group, Gastops, J Squared Technologies, L3Harris Canada, MDA Space ModestTree and PCL Construction, PV Labs and Telesat, and has entered into contracts with two Canadian firms, Modest Tree and Hepburn Engineering.

• The MOU with MDA Space (Brampton, Ontario) is related to aerospace and satellite sectors. 

• The Teaming Agreement with CAE (Montreal, Quebec) is related to integrated training solutions and critical operations support solutions.

• Under the Teaming Agreement, Babcock Canada (Ottawa, Ontario, Vancouver and Victoria, British Columbia, and Halifax, Nova Scotia) becomes the exclusive In-Service Support partner that will support Hanwha Ocean on CPSP.

• The MOU with BlackBerry (Waterloo, Ontario) is related to their secure communications product portfolio and embedded software solutions.

• The MOU with Curtis-Wright Indal Technologies (Mississauga, Ontario) is related to towed array handling and winch system.

• The MOU with Des Nedhe Group (Saskatoon, Saskatchewan) is related to economic sustainability.

• The MOU with Gastops (Ottawa, Ontario) is related to propulsion systems machinery control, modelling and simulation.

• The MOU with J Squared Technologies (Ottawa, Ontario) is related to critical capabilities for sea platforms.

• The MOU with L3Harris Canada (Ottawa, Ontario) is related to their integrated platform management system, integrated communications system, steering diving & control system, and other L3Harris maritime capabilities.

• The MOU with Modest Tree (Halifax, Nova Scotia) is related to immersive training and digital in-service support solutions.

• The MOU with PCL Construction (Edmonton, Alberta) is related to construction of infrastructure.

• The MOU with Algoma Steel (Sault Ste Marie, Ontario) is related to investment in facility revitalization and acquisition of steel.

• The MOU with MDA Space (Brampton and Ottawa, Ontario; Montreal, Quebec; Richmond, British Columbia; Halifax, Nova Scotia) is related to advanced satellite technologies.

• The MOU with Telesat (Ottawa, Ontario) is related to next-generation sovereign satellite connectivity solutions and user terminals.

• The MOU with Cohere (Toronto, Ontario) is related to AI-enabled systems and applications for submarine operations and shipyard processes.

• The MOU with PV Labs (Burlington, Ontario) is related to advanced capabilities for Electro-Optical Tactical Systems.

For more information, visit: www.KSS-III.ca/Canadian-Partners