On 2 June, the governments of Canada and the Republic of Korea announced broader cooperation across energy security, critical minerals, strategic resource investments and supply chain partnerships. The announcement built on existing collaboration and highlighted a shared commitment to long-term economic and industrial cooperation.
The announcement followed a meeting between Canada’s Minister of Energy and Natural Resources, Tim Hodgson, and Kang Hoon-Sik, the Republic of Korea’s Chief of Staff to the President and Special Envoy for Strategic Economic Cooperation. It also followed the Korea-Canada Energy and Resource Supply Chain Forum in Ottawa.
The forum brought together senior federal and provincial officials, industry leaders, investors and representatives from Canada’s energy, mining, infrastructure and technology sectors. Participants discussed opportunities in energy, critical minerals, hydrogen, advanced manufacturing and strategic resource development.
The 2 June announcement identified critical minerals, strategic resource investments, naturally occurring hydrogen research and development, and long-term energy security as priority areas. Hanwha Ocean said the partnership is already generating significant economic activity.
In 2025, energy products became Canada’s largest export category to the Republic of Korea, valued at about CAD 2.2 billion. Metal ores and non-metallic minerals were the second-largest category, valued at about CAD 1.5 billion.
At the APMA-Algoma-Hanwha memorandum of understanding signing ceremony on 1 June, Kang highlighted Canada’s growing role in Korea’s long-term energy diversification strategy. Korea has already invested about CAD 1.6 billion in the LNG Canada project and is expected to increase that investment to CAD 3.2 billion as future phases advance.
Kang also highlighted plans to increase imports of Canadian crude oil. Korea is expected to import about 16 million barrels this year and up to 20 million barrels next year.
Korea has recently removed the 3% tariff on Canadian crude oil imports. Hanwha Ocean said the move further strengthens long-term energy trade between the two countries.
The Republic of Korea’s wider economic vision for Canada also includes emerging industries. In an interview with CTV News, Kang outlined “Project Beaver”, a proposed industrial cooperation initiative linked to Hanwha Ocean’s CPSP proposal.
According to Kang, the initiative would involve more than CAD 3.1 billion in investment and support the creation of about 9,000 jobs. It would focus on developing a Canadian hydrogen transportation ecosystem, including the manufacture of hydrogen trucks.
The proposal includes plans for a hydrogen liquefaction facility in British Columbia. It also includes a network of hydrogen refuelling stations across British Columbia and Alberta, and a hydrogen-powered commercial vehicle manufacturing facility in Ontario.
Kang described the initiative as an example of the broader economic opportunities that could come with deeper industrial cooperation between Canada and the Republic of Korea. Hanwha Ocean said the concept fits within wider investment and supply chain cooperation between the two countries.
Hanwha Ocean is supporting these objectives through broader engagement in Canada’s energy sector. This includes engineering collaboration on the Fermeuse LNG project in Newfoundland and Labrador and participation in emerging LNG export opportunities in Western Canada.
The company said its experience in offshore energy infrastructure, floating LNG facilities, shipbuilding and marine engineering can support the development and export of Canadian energy resources to global markets. Hanwha Ocean said the same long-term approach is reflected in its Canadian Patrol Submarine Project proposal.
Independent analysis estimates that Hanwha Ocean’s CPSP proposal, submitted in late April, could generate CAD 96.3 billion in GDP impact. It could also support more than 433,000 Canadian job-years over the initial acquisition period from 2026 to 2044.
The proposal is designed to create long-term economic benefits through industrial partnerships, supply chain development, workforce growth, technology collaboration and sustained investment across Canada. Hanwha Ocean said the estimates do not include potential economic impact from future defence equipment manufacturing opportunities involving APMA member companies.
The estimates also do not include the recently announced LNG and hydrogen investments, which are still being evaluated. Hanwha Ocean said these could further expand the proposal’s economic benefits to Canada.
Flavio Volpe, President of APMA, said after signing the memorandum of understanding with Algoma and Hanwha on 1 June that the partnership could potentially create 30,000 direct and indirect jobs in Ontario. The release said this would add to the wider economic case linked to the industrial cooperation proposal.
Hanwha also plans to establish a Venture Capital Fund to support investment and growth in innovative Canadian companies. The fund would focus on defence, shipbuilding, artificial intelligence, aerospace, nuclear technologies and other advanced technology sectors.
Hanwha Ocean said the fund would help strengthen Canada’s industrial base. It said it would also support the next generation of high-growth industries.
The company’s proposal also gives Canada a pathway to recapitalise its submarine fleet on an accelerated timeline. Hanwha Ocean has committed to delivering the first four submarines by 2035 and said it has the capacity to deliver all 12 submarines by 2043.
Hanwha Ocean said its proposal represents a nation-building opportunity when combined with the wider industrial, energy and economic cooperation emerging between Canada and the Republic of Korea. The company said it could strengthen Canada’s defence capabilities while expanding industrial capacity, creating high-value jobs, attracting long-term investment and supporting economic competitiveness in the decades ahead.
