Key Points: South Korean shipyards Hanwha Ocean and Hyundai Heavy Industries have jointly pitched a major $20-$24 billion unsolicited defense deal to Canada, centered on supplying up to 12 advanced KSS-III submarines.
-This proposal offers a potentially faster timeline (first delivery 2030-32) for replacing Canada’s aging Victoria-class fleet under its CPSP program.
Victoria-Class Submarine from Canada.
Victoria-Class Submarine Canadian Navy. Image Credit: Government Photo.
-The KSS-III features long submerged endurance via AIP and lithium-ion batteries, ideal for Arctic operations, plus VLS missile capability.
-The deal includes potential Canadian industrial participation and other equipment like K9 howitzers, positioning South Korea as a key alternative defense partner amid strained US-Canada relations.
South Korea Offers Canada $20–$24 Billion Submarine Deal
An ambitious deal between two competing shipyards in South Korea has teamed up on a $20-billion to $24-billion proposal to sell Canada 12 of the country’s latest submarines, known as the KSS-III.
South Korea pitched the proposal in a detailed, unsolicited letter to the federal government, delivered by Hanwha Ocean, Hyundai Heavy Industries (HHI), and senior South Korean defense officials in early March.
The first four submarines are promised by 2035—well ahead of Canada’s current procurement schedule under the Canadian Patrol Submarine Project (CPSP), which aims to replace the aging Victoria-class fleet.
Canada increasingly looks to diversify its military partnerships, and the KSS-III proposal positions South Korea as a credible and forward-leaning defense partner ready to fill gaps that might emerge from strained relations with the United States.
The Korean deal to modernize Canada’s submarine fleet includes artillery systems and armored vehicles, some of which South Korea will supply immediately.
The KSS-III Submarine
The main feature of Korea’s offer is the KSS-III submarine, a state-of-the-art vessel developed by Hanwha Ocean and Hyundai Heavy Industries. They have also promised to deliver the first four submarines by 2035, significantly ahead of Canada’s current timeline.
Known for its advanced air-independent propulsion system, enabling extended submerged operations, the KSS-III can boost Canada’s operations in vast Arctic waters.
Significantly larger than South Korea’s previous generation of German-designed KSS-II/Type 214 submarines, the KSS-III Batch 1 boats have a crew of 50, displace 3,358 tons surfaced and 3,705 tons submerged, and measure 274 feet long with a 31.5-foot beam.
Like the older KSS-II, the KSS-III class is powered by diesel-electric with supplemental AIP capabilities using fuel cell technology. This provides top speeds of 20 knots and extended underwater operations lasting as long as 20 days.
The KSS-III has six 533 mm (21 in) forward-firing torpedo tubes, which fire the “Tiger Shark” heavyweight torpedoes developed by LIG Nex1.
The Batch-I submarines are equipped with six K-VLS cells capable of launching the Hyunmoo 4-4 ballistic missiles with a range of around 500 km (310 mi). The Batch-II submarines will be equipped with ten K-VLS cells, presumably for carrying the Hyunmoo 4-4 and the future Chonryong land-attack cruise missile, which is currently in development.
Canada’s key requirements for the new submarine fleet include stealth, lethality, persistence, and Arctic deployability. The future submarines must offer extended range and endurance, allowing Canada to detect, track, deter, and, if necessary, defeat maritime threats in all three oceans.
The KSS-III, also known as the Dosan Ahn Changho-class, is well-constructed to meet Canada’s requirements.
The proposal also includes establishing maintenance and potentially manufacturing facilities in Canada, which will create local job opportunities and improve Canada’s defense industrial base.
Hanwha Aerospace, a sister company to Hanwha Ocean, has offered to supply Canada with advanced artillery systems, including the K9 self-propelled howitzer and a range of armored vehicles.
South Korea and Canada share strategic interests in Arctic security and Indo-Pacific stability.
Lithium-ion Battery Power
Rather than relying on traditional lead-acid batteries, the KS-III draws its power from lithium-ion batteries, which Samsung SDI developed.
Hanwha Ocean officials claim the new batteries allow for greater cruising speed and longer submerged times. The company claims the boat can remain underwater for more than 21 days, essential for Canada in the Arctic. Korea is only the second country in the world to power its subs with lithium-ion batteries. Japan was the first.
The Korean Sales Pitch Included Secure Supply Chains
South Korean Admiral (Ret.) Steve Jeong, vice president of Hanwha Ocean, said the company’s KSS-III submarine is now in service and meets all of Canada’s requirements. “Once the contract is signed, we can deliver in six years,” he told the media.
He added that the South Korean submarines, three of which are already built, can operate underwater for more than three weeks without having to surface. In addition, the boats have a range of more than 7,000 nautical miles, Jeong said. Those capabilities would make them valuable for Arctic operations.
Canada’s deadline to have new submarines operational is 2035. Korea has assured Ottawa that it can meet that deadline. They said they could deliver the first submarine between 2030 and 2032. The rest would follow every couple of years at intervals set by the Canadian government.
About the Author:
Steve Balestrieri is a 19FortyFive National Security Columnist. He served as a US Army Special Forces NCO and Warrant Officer. In addition to writing for 19FortyFive, he covers the NFL for PatsFans.com and is a member of the Pro Football Writers of America (PFWA). His work was regularly featured in many military publications.
