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South Korea’s submarine bid in Canada highlights NATO-linked buying pressures
South Korea’s loss of Canada’s Patrol Submarine Project is raising concerns the country could face fewer new orders for its submarine industry.
South Korea’s failed bid for Canada’s next-generation Patrol Submarine Project has exposed a shift in how major defence purchases are being made, with analysts pointing to NATO security ties and growing pressure for member states to favor allied industrial bases over pure commercial competitiveness, according to SCMP Economy.
The outlet reports that the CPSP award to Germany’s ThyssenKrupp Marine Systems was seen as “pouring cold water” on South Korea’s defence sector, which has performed strongly in recent years, with Shin Jong-woo, secretary general of the Korea Defence and Security Forum, saying the setback is likely to weigh on momentum.
SCMP Economy also notes that the setback is deepening concerns about whether South Korea’s submarine industry will soon face a shortage of new orders as defence protectionism intensifies, potentially pushing firms toward more overseas production through joint ventures and local manufacturing partnerships.