Another Korean Delegation coming to Canada

News

Another Korean delegation will be visiting Canada in the coming weeks. Despite my assumptions that another delegation would be a while away, Korean officials have confirmed that another delegation of both government and industry officials will be visiting Canada the week of the 27th.

This delegation will be led by Chief of Staff to the President Kang Hoon-sik and also include Minister of Trade, Industry and Energy Kim Jung-kwan. Officials from several Korean companies, including Hanwha, Hyundai Heavy Industries, Hyundai Motors Group, and LIG Nex1, are also expected to join in this trip.

Previously, I had speculated that the rate of these visits would slow in the new year as major events like the Canada-Korea Defence Roadshow passed; however, the stakes surrounding CPSP continue to rise, and Team One Korea seems to be on the offensive.

Officials will meet with both Prime Minister Mark Carney as well as Ontario Premier Doug Ford at the minimum. There are some rumors they will also meet with Premier Legault, but we can't confirm that. Officials from Hanwha are also expected to meet with industry to finalize and discuss ongoing partnerships.

Chief of Staff Kang has taken an especially leading role the last two months as the Korean government renews its efforts to grow K-Defence into a top five exporter globally. He had previously made trips to Europe in October and the Middle East in November to promote K-Defence abroad, including visits to Poland, Romania, the UAE, and Saudi Arabia.

The Americas is next on that list, with the delegation also expected to visit the United States as well. The inclusion of Hyundai Motors is also notable, given the recent news involving the Federal Government pushing both Korea and Germany for automotive manufacturing as part of their CPSP bids.

As it exists now, neither side seems fully engaged in expanding manufacturing here. Korean sources paint a cold reception to the idea, and Hyundai seems less than interested. Nevertheless, their inclusion is important and noteworthy at this time. While I still believe chances are slim, and my idea of leveraging their relationship with GM to maybe utilize the CAMI plant in Ingersoll has taken a backburner as of yesterday, there might still be a pathway for Hyundai Motors to do something here, although I'm not holding my breath.

I also expect that this trip will include new partnerships announced—at least, in my gut feeling. Team GERNOR has taken control of the news cycle with both a $1 billion export deal between Lockheed Canada and the Deutsche Marine for CMS330 and their announcement of a partnership with Marmen.

If you travel around Korean media and social spaces, you will take note of how both announcements have caused some concern and panic about the future of CPSP. While I don't think it's that serious, the inclusion of Marmen is a major notch in TKMS's belt.

Marmen has been specifically pushed by officials as a company of interest, primarily by Ministers Joly and Champagne, if rumors are to be believed. They are one company that officials encouraged both Hanwha and TKMS to look into working with. Another was Algoma Steel, which we might be hearing more about soon.

TKMS is expected to announce another major partnership soon; no, I don't know who. There are some rumors that it might be Chantier Davie. Under the current RFP, both suppliers are required to set up maintenance facilities on both coasts. There were some rumors of Team One Korea poking around Halifax recently, and of course, Seaspan has been reached out to by both parties.

While not required to be tied to a major shipyard, being able to leverage the influence and established infrastructure of one of the existing major yards would be a huge win for either party. Korean officials also apparently have been in contact with Ontario Shipyard. Of course, take all this with some salt. I expect almost every yard of importance has been contacted by both parties.

These are just fun rumors… however, even rumors on such a massive project are worth exploring and at least mentioning when I hear them. I also feel a bit gossipy today, so why not throw some out there for fun. It doesn't kill anyone after all.

Along with this, I have finally decided to create the TEAM GERNOR partnership graphic! I was waiting for them to confirm at least one partnership before I made it. As always, treat any rumored name as just that, a rumor. Don't want misinformation out there!

I should also note that some partnerships, such as the now very odd partnership between Hanwha and Kongsberg is specifically tied to Land projects, though I have decided to include them here as they could play a role in future offsets tied to CPSP.

Looks like we won't get the quiet January I was hoping for!