STATEMENT BY HANWHA OCEAN REGARDING CANADIAN PATROL SUBMARINE PROJECT

August 27, 2025

Hanwha Ocean is extremely pleased to have selected by the Government of Canada as a qualified supplier for the Canadian Patrol Submarine Project (CPSP).

Hanwha’s KSS-III Canadian Patrol Submarine (KSS-III CPS) is proven, in-service, in active production, and meets all the operational and urgent delivery requirements for CPSP, including superior underwater surveillance capability and deployability in the Arctic with extended range and endurance that will provide stealth, persistence and lethality to ensure that Canada can detect, track, deter and, if necessary, defeat adversaries in all 3 of its oceans.

Importantly, Hanwha can deliver four KSS-III CPS to fully replace Canada’s current Victoria Class fleet before 2035 if on contract in 2026. Earlier retirement of the Victoria Class fleet will result in estimated savings of approximately $1 Billion on maintenance and support costs. The additional 8 submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 submarines can be delivered to Canada by 2043. No other option can come anywhere close to this delivery schedule.

Further, Hanwha is committed to establishing a robust and long-term partnership with the Government of Canada and Canadian industry in the areas of defence, space, sustainable energy and critical minerals that will create jobs and economic growth, accelerate Canada’s defence capabilities, and enhance cooperation, partnership and supply chains between Canada and South Korea – a relationship that is becoming more and more important, and one that supports the objectives of Canada’s Indo-Pacific Strategy. Already, Hanwha has MOUs and Teaming Agreements in place with more than a dozen Canadian companies.

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About KSS-III Canadian Patrol Submarine (www.KSS-III.ca)

The KSS-III Canadian Patrol Submarine (KSS-III CPS) is South Korea’s latest evolution in conventional submarine technology—indigenously designed and constructed through decades of spiral development of a modern, conventional, ocean-going submarine. Over the last four decades, Hanwha Ocean has continued to evolve a proven MOTS submarine design culminating with the latest batch of the KSS submarine fleet.

Equipped with Lithium-ion batteries and an Air Independent Propulsion (AIP) system, the KSS-III CPS offers the longest submerged endurance among conventional submarines in service. The platform is fully optimized for Anti-Submarine Warfare, Anti-Surface Warfare, Intelligence, Surveillance and Reconnaissance (ISR), Minelaying, and Special Operations Forces (SOF) support.

KSS-III is not an export-only model—it is the same class of submarine actively operated by the Republic of Korea Navy in real-world conditions. This ensures Canada will benefit from a proven platform, backed by an established supply chain and validated operational and maintenance data throughout the 30+ years of in-service support (ISS).

The KSS-III is the backbone of the ROK Navy submarine force. Acquisition of the KSS-III would allow Canada to be a member of the international KSS-III User Group which consists of a growing number of nations.

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About Hanwha Ocean (www.hanwhaocean.com/en)

Hanwha Ocean’s shipyard in Geoje, South Korea, spanning 5 square kilometres, is one of the largest and most advanced shipbuilding facilities in the world and is where we build the KSS-III submarine. With more than 21,000 employees, Hanwha Ocean specializes in the design and construction of various naval and commercial vessels, including submarines, destroyers, frigates, auxiliary vessels, container ships, and tankers as well as offshore platforms, drilling rigs, Floating Production Storage and Offloading (FPSO) units and Floating Production Units (FPUs).

For more than forty (40) years, Hanwha Ocean has been building and servicing submarines for the Republic of Korea Navy and other navies.

Since 1973, the company has built more than 1,400 vessels, including 114 naval vessels. The company designed and delivered the first KSS-III to the Republic of Korea Navy in 2021, and the second in 2023.

In 2023 alone, Hanwha Ocean constructed 41 naval and commercial vessels.