Government Ministries Join Forces to Win 60 Trillion Won Canada Submarine Contract

Signing ceremony for letter of commitment on government support and implementation of industrial and technological benefits (ITB)

Government ministries have once again reaffirmed their commitment to providing government-level support to win the Canada Patrol Submarine Project (CPSP), which is valued at up to 60 trillion won.

From the left in the front row: Uh Seongcheol, President of Hanwha Ocean; Lee Kyunglim, Director for Americas-Asia Cooperation, Ministry of Science and ICT; Lee Jongi, Policy Chief, Republic of Korea Navy; Hong Jipyo, Director General for North American Affairs, Ministry of Foreign Affairs; Lee Yongcheol, Administrator, Defense Acquisition Program Administration; Lee Minwoo, Director of Industrial Policy, Ministry of Trade, Industry and Energy; Sim Cheonsu, Director of Defense Export Planning Division, Ministry of National Defense; Park Sungjin, Director of Nuclear Power Industry Policy Division, Ministry of Climate and Environment; Joo Wonho, Business Representative, HD Hyundai Heavy Industries. Photo by Defense Acquisition Program Administration

On the 20th, the Defense Acquisition Program Administration announced that it held a signing ceremony at its Gwacheon headquarters for a letter of commitment expressing the government's support and its intention to implement industrial and technological benefits (ITB) for the Hanwha Ocean-HD Hyundai Heavy Industries "One Team," which is pursuing a contract for Canada's submarine program.

The signing ceremony was attended by the Defense Acquisition Program Administration, the Ministry of National Defense, the Navy, the Ministry of Foreign Affairs, the Ministry of Trade, Industry and Energy, the Ministry of Science and ICT, and the Ministry of Climate, Energy and Environment. The letter of commitment states that, in order to support winning the Canadian submarine project, the relevant ministries, led by the Office of the President, will jointly identify industrial cooperation projects, reflect them in the proposal, and provide responsible, whole-of-government support for their implementation.

In this bidding race, where the Hanwha Ocean-HD Hyundai Heavy Industries consortium and Germany's Thyssenkrupp Marine Systems (TKMS) are competing in the final round, actual contributions to Canadian industry (ITB) are reflected as an important evaluation criterion alongside performance, delivery schedule, and price. Taking this into account, Hanwha Ocean and HD Hyundai Heavy Industries have been preparing their proposal, while the relevant ministries, led by the Office of the President, have also collaborated to identify and flesh out industrial cooperation projects and include them in the proposal.

Lee Yongcheol, Administrator of the Defense Acquisition Program Administration, said, "The Canadian submarine project is an industrial cooperation package project that must comprehensively embody the government's credibility and implementation capabilities," adding, "The government will systematically provide the necessary support so that companies can faithfully fulfill their proposals."