South Korea’s naval export strategy faces a $49 billion test in Canada



Analysis South Korea’s naval export strategy faces a $49 billion test in Canada Inter-business rivalry and lack of diplomatic coordination challenge South Korea’s bid to become a major naval power Joon Ha ParkMarch 18, 2025 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON ROKS Ahn Mu, one of South Korea’s Jangbogo-III (KSS-III) class Batch I submarines on duty \| Image: Hanwha Ocean South Korea’s “One Team” defense partnership between HD Hyundai Heavy Industries and Hanwha Ocean reflects a strategic move to boost naval exports and aligns with South Korea’s broader goal of becoming a top-five global arms exporter, but unresolved internal rivalry and weak government coordination threaten its success. Success in securing high-profile contracts, particularly Canada’s $49 billion submarine deal, could elevate South Korea’s status as a global defense exporter. However, internal tensions, legal conflicts and inconsistent diplomatic support pose significant risks to this ambitious strategy. TARGETING THE CANADIAN DEAL HD Hyundai and Hanwha Ocean’s combined effort to secure the Canadian submarine © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01Lee Jae Myung’s ‘pacemaker’ strategy tests South Korea’s leverage with Trump 02Trump’s Korea investment victory lap masks safeguards Seoul still controls 03North Korean POW dispute tests Seoul-Kyiv trust and future Ukraine policy 04South Korea’s CPTPP push exposes the cost of turning trade gains into consensus 05AI storage boom gives South Korea battery makers an EV overcapacity lifeline 06South Korea’s Mexico strategy runs into the hard limits of USMCA politics 07Preschool test ban forces South Korea’s English hagwons to rethink placement 08Lee Jae Myung’s Wall Street pitch tests South Korea’s capital market credibility

Analysis

South Korea’s naval export strategy faces a $49 billion test in Canada

Inter-business rivalry and lack of diplomatic coordination challenge South Korea’s bid to become a major naval power

Joon Ha ParkMarch 18, 2025

South Korea’s naval export strategy faces a $49 billion test in Canada

ROKS Ahn Mu, one of South Korea’s Jangbogo-III (KSS-III) class Batch I submarines on duty | Image: Hanwha Ocean

South Korea’s “One Team” defense partnership between HD Hyundai Heavy Industries and Hanwha Ocean reflects a strategic move to boost naval exports and aligns with South Korea’s broader goal of becoming a top-five global arms exporter, but unresolved internal rivalry and weak government coordination threaten its success.

Success in securing high-profile contracts, particularly Canada’s $49 billion submarine deal, could elevate South Korea’s status as a global defense exporter. However, internal tensions, legal conflicts and inconsistent diplomatic support pose significant risks to this ambitious strategy.

TARGETING THE CANADIAN DEAL

HD Hyundai and Hanwha Ocean’s combined effort to secure the Canadian submarine

South Korea’s naval export strategy faces a $49 billion test in Canada

LATEST ANALYSIS

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Joon Ha Park