South Korea’s failed bid for Canada’s next-generation submarine fleet has exposed a growing problem for one of Asia’s fastest-rising defence exporters: price, speed and technology may no longer be enough.
Analysts said the loss of the Canadian Patrol Submarine Project (CPSP) to Germany’s ThyssenKrupp Marine Systems showed how Nato security ties and pressure on member states to favour allied industrial bases were increasingly outweighing commercial competitiveness in decisions over major purchases.
“The failure of the CPSP bid poured cold water on South Korea’s defence industry, which has performed strongly in recent years,” said Shin Jong-woo, secretary general of the Korea Defence and Security Forum, a Seoul-based think tank.
“As far as submarines are concerned, exports appear doomed for the foreseeable future, even though they are highly competitive.”
The setback has deepened concerns that South Korea’s submarine industry could soon face a shortage of new orders, forcing its defence firms to pursue more overseas production through joint ventures and local manufacturing partnerships as defence protectionism intensifies.