On Tuesday, shares of Hanwha Ocean fell approximately 23% after Canadian Prime Minister Mark Carney announced that Germany's Thyssenkrupp Marine Systems (TKMS) would be the preferred supplier for Canada's next fleet of submarines. The contract, which was estimated to be worth up to $100 billion over three decades, represents a major setback for Hanwha Ocean.
South Korean President Lee Jae Myung acknowledged the disappointment but emphasized the importance of perseverance in the face of challenges. TKMS's submarine platform is already utilized by Germany and Norway, reinforcing the defense ties among these NATO allies.
TKMS stated that this contract marks a new chapter in defense cooperation, enhancing Canada's access to European defense networks amid increasing pressure from U.S. President Donald Trump regarding NATO defense spending.
Vina Nadjibulla, vice-president of research & strategy at Asia Pacific Foundation of Canada, noted that Canada's choice of TKMS should not be seen as a rejection of South Korea but rather as a reflection of NATO's influence and the need for integrated defense capabilities