Industry Minister Visits Canada and the U.S. to Support Submarine Bid and Discuss Investment Cooperation

SEOUL, May 5 — Industry Minister Kim Jung-kwan is visiting Canada and the United States to support South Korea’s efforts to secure a major overseas shipbuilding contract and to discuss bilateral investment cooperation.

According to the Ministry of Trade, Industry and Energy, Kim will meet with Canadian government officials in Ottawa to discuss Canada's next-generation conventional submarine acquisition program. The project involves the construction of up to 12 submarines and is estimated to be worth approximately 60 trillion won.

During the visit, Kim is expected to seek support for the South Korean consortium. The consortium consists of Hanwha Ocean and HD Hyundai Heavy Industries and is competing against Germany’s Thyssenkrupp Marine Systems for the contract. The final contractor is expected to be selected in June.

After completing his visit to Canada, Kim will travel to Washington, D.C., where he is scheduled to meet with U.S. Commerce Secretary Howard Lutnick and other government officials to discuss South Korean investment projects in the United States.

In March, South Korea’s National Assembly passed a special bill to implement the country's $350 billion investment commitment to the United States. The government plans to establish a new state-run corporation to carry out the investment package.

The investment pledge was made as part of a trade agreement reached last year, under which the United States agreed to lower tariffs on South Korean products in exchange for South Korea’s commitment to expand investment in the U.S.

Officials expect the trip to help strengthen South Korea’s position in the submarine competition while further enhancing economic cooperation between Seoul and Washington.