Hanwha Ocean has failed to secure one of the most lucrative defence contracts on offer, after Canada selected Germany's ThyssenKrupp Marine Systems (TKMS) as its preferred bidder for a next-generation submarine programme. The news emerged on 7th July 2025.
The contract, valued at around 100 trillion Korean won, is intended to replace the Canadian navy's ageing submarine fleet. Canada named TKMS as its preferred negotiating partner, ending Hanwha Ocean's bid at the final stage of the competition.
The South Korean shipbuilder had mounted an assertive campaign for the contract, promoting its domestically developed submarine technology — the product of Seoul's decades-long investment in building an indigenous naval shipbuilding capability. Yet TKMS proved a formidable opponent. The German firm is widely regarded as one of the world's foremost submarine exporters, with an extensive track record of supplying its Type 212 and Type 214 submarines to navies across Europe, Asia, and beyond.
The defeat is a setback for Hanwha Ocean, which has been seeking to expand its defence exports as part of a broader push by South Korean defence manufacturers into global markets. South Korea has emerged in recent years as a significant arms exporter, with companies such as Hanwha and HD Hyundai Heavy Industries competing for major international contracts. Winning the Canadian tender would have represented a landmark achievement for the country's naval shipbuilding industry.