According to the industry ministry in Seoul, Korea recently hosted a collaborative industrial forum with Canada in an effort to bolster its chances of securing a significant submarine contract from the Canadian government.
The Korea-Canada industrial cooperation forum was recently organized by the Ministry of Trade, Industry and Resources in Toronto with the aim of enhancing bilateral collaboration in key sectors such as future mobility, defense, space, and AI.
Also Read: Vietnam, Cambodia Bolster Border Trade Connectivity
Canada seeks offset agreements in key sectors like the automobile industry, particularly with foreign partners like Korea. An offset agreement involves an arrangement in which the seller commits to offering industrial advantages, such as the transfer of technology, to the buyer's nation as a component of a more extensive contract.
The Canadian government is said to be contemplating the use of an offset agreement as a crucial determinant in the selection of the winning bid for its submarine program. The prominent South Korean shipbuilder Hanwha Ocean is competing for a project valued at approximately 60 trillion won ($41.4 billion) after being chosen as one of the final two contenders, along with Thyssenkrupp Marine Systems (TKMS) of Germany.
Also Read: Party Chief Demands Shift to Inclusive Social Model
The Korean government dispatched a distinguished delegation to Canada to bolster the bid. The delegation, led by presidential chief of staff Kang Hoon-sik, comprises Industry Minister Kim Jung-kwan and Minister of Defense Acquisition Program Administration Lee Yong-cheol.
Within the confines of the forum, Korean and Canadian corporations formalized six memorandums of understanding (MOUs) to solidify collaboration across key sectors, according to the ministry.
The memorandums of understanding encompass partnerships in various industries, such as steel, telecommunications, and AI. One agreement involves collaboration between Hanwha Ocean and Algoma Steel in the steel sector. Another includes cooperation in low Earth orbit satellite technology between Hanwha Systems in Korea, Telesat, and MDA in Canada. Additionally, there is a trilateral AI cooperation agreement between Hanwha Ocean, Hanwha Systems, and Cohere.
Also Read: Prabowo, Wang Huning Reaffirm Commitment to Strengthen Ties
During the forum, a business roundtable event was organized to convene top-level executives from 12 Korean companies and nine Canadian companies. The purpose of the event was to delve into potential avenues for enhancing collaboration in cutting-edge industries between the two nations, as stated by the ministry.
The Minister of Industry stated that Korean businesses already view Canada as a dependable and important ally. He also mentioned that increasing collaboration between the two nations will assist in fortifying their supply chain resilience, boosting job creation, and improving their worldwide competitiveness.