[Edaily Reporter Park Sun-Yeop ] Hanwha Ocean’s stock is plummeting in early trading following news that it was not selected as the preferred bidder for Canada’s Next-Generation Submarine Program (CPSP). Shares of HD HYUNDAI HEAVY INDUSTRIES and Hanwha Group’s defense-related companies, which also participated in the bidding, are also trading lower.
According to MP Doctor on the 7th, Hanwha Ocean(042660)was trading at 91,200 won as of 9:30 a.m. today, down 24,900 won (21.45%) from the previous trading day. At the same time, HANWHA SYSTEMS(272210)is down 13.97%, Hanwha(000880)is down 11.13%, and HANWHA AEROSPACE(012450)is down 7.33%. HD HYUNDAI HEAVY INDUSTRIES(329180), which participated as part of the same consortium in this bidding process, is also trading at 554,000 won, down 29,000 won (4.97%).

Earlier, on the 6th (local time), Canadian Prime Minister Mark Carney announced at the Halifax Naval Base in Nova Scotia that Germany’s ThyssenKrupp Marine Systems (TKMS) had been selected as the preferred bidder for the CPSP project. The project is reportedly worth up to 60 trillion won, including the costs of building 12 submarines and maintaining, servicing, and operating them over 30 years.
Prime Minister Carney explained, “Should negotiations with TKMS break down, Canada reserves the right to designate Hanwha Ocean, the alternate supplier, as the preferred supplier and proceed with negotiations.” He added, “Both TKMS and Hanwha’s platforms met the Canadian Navy’s stringent requirements,” suggesting that the competition remained fierce right up to the last moment.
This decision is understood to have been influenced by a combination of factors, including not only submarine performance but also alliance relations, economic benefits, and delivery schedules. Prime Minister Carney stated that, in accordance with the contract terms, an amount equivalent to 100% of the investment will be reinvested within Canada. He also explained that TKMS proposed allocating a portion of the submarines ordered by the German and Norwegian navies to Canada first, enabling Canada to receive the first four submarines in 2034—earlier than originally planned.
It was also emphasized that TKMS supplies one-third of the submarines to the North Atlantic Treaty Organization (NATO). The South Korean side waged an all-out joint civilian-military campaign, including dispatching the ROKS Dosan Ahn Chang-ho to Canada, and Hanwha Ocean proposed a fast delivery schedule—promising to deliver the first submarine by 2032—along with the creation of economic opportunities worth approximately 70 billion Canadian dollars by 2044; however, it was unable to overcome the barrier of the NATO alliance premium.
Regarding this outcome, Hanwha Ocean stated, “We did our best, but we were unable to overcome the barrier of the NATO alliance and did not achieve the result we had hoped for,” adding, “Although we approached this with a sincere and earnest attitude, leaving us with much regret, we believe this result is entirely due to Hanwha Ocean’s shortcomings.”
The company continued, “We will thoroughly analyze the challenges identified through this bidding process to devise concrete alternatives,” adding, “We will definitely find a way for ‘K-Marine Defense’ to make further strides in the global market.”
In the securities industry, some analysts note that while this outcome is disappointing, it does not mean that medium- to long-term opportunities for marine defense contracts have vanished. Yang Seung-yoon, an analyst at EUGENE INVESTMENT & SECURITIES, said, “Although we hit a wall with NATO this time, opportunities will eventually open up for Korea as we continue to knock on that door,” adding, “We must use this as an opportunity to elevate the competitiveness of Korea’s defense exports to the next level through international joint development, local production, and the establishment of long-term MRO and military logistics support systems.”