Canada-Korea cooperation drives energy security and growth
The Republic of Korea and Canada are enhancing their collaboration in energy resources, critical minerals, and supply chain resilience, signifying the increasing importance of their economic relationship.
On June 2, the Governments of Canada and the Republic of Korea declared a significant uptick in cooperation focused on energy security, strategic resource investments, and supply chain partnerships. This announcement builds on their current collaborations and emphasizes a shared commitment to bolstering long-term economic and industrial connections.
This announcement came after a meeting between Canada’s Minister of Energy and Natural Resources, Tim Hodgson, and the Republic of Korea’s Chief of Staff to the President and Special Envoy for Strategic Economic Cooperation, Kang Hoon-Sik, which followed the Korea–Canada Energy and Resource Supply Chain Forum held in Ottawa.
The forum gathered senior officials from federal and provincial governments, along with leaders from various industries, investors, and representatives from Canada’s energy, mining, infrastructure, and technology sectors to discuss expanded cooperation opportunities in fields such as energy, critical minerals, hydrogen, and advanced manufacturing.
The June 2 announcement lists several priority areas for future cooperation including critical minerals, strategic resource investments, research and development in naturally occurring hydrogen, and long-term energy security — areas that are already generating substantial economic activity.
In 2025, energy products emerged as Canada’s largest export category to the Republic of Korea, valued at approximately CAD $2.2 billion, while metal ores and non-metallic minerals were the second-largest category at approximately CAD $1.5 billion.
At the APMA–Algoma–Hanwha MOU signing ceremony on June 1, Kang Hoon-Sik underscored Canada’s pivotal role in Korea’s long-term energy diversification strategy. Korea has invested about CAD $1.6 billion in the LNG Canada project, with intentions to double this investment to CAD $3.2 billion as the project progresses.
Kang also noted the intention to escalate imports of Canadian crude oil, predicting Korea would import around 16 million barrels this year and up to 20 million barrels next year. The removal of the 3% tariff on Canadian crude oil imports further enhances the long-term energy trade between the two nations.
The Republic of Korea’s broader economic vision for Canada also involves initiatives in emerging industries. In a recent interview with CTV News, Kang introduced “Project Beaver,” an ambitious industrial cooperation initiative linked to Hanwha Ocean’s CPSP proposal.
This initiative could channel more than CAD $3.1 billion in investment and generate approximately 9,000 jobs through the establishment of a Canadian hydrogen transportation ecosystem, encompassing the manufacturing of hydrogen trucks. Proposed developments include a hydrogen liquefaction facility in British Columbia, hydrogen refueling stations throughout British Columbia and Alberta, and a hydrogen-powered vehicle manufacturing facility in Ontario. Kang believes that this initiative exemplifies the vast economic opportunities stemming from deeper industrial cooperation between Canada and Korea.
Hanwha Ocean is furthering these aspirations by engaging with Canada’s energy sector through its engineering collaboration on the Fermeuse LNG project in Newfoundland and Labrador, as well as exploring emerging LNG export opportunities in Western Canada. With decades of offshore energy infrastructure experience, shipbuilding, and marine engineering, the company stands ready to aid the development and export of Canadian energy resources to global markets.
Hanwha’s commitment to CPSP aligns with a long-term strategic perspective.
Independent assessments suggest that Hanwha Ocean’s CPSP proposal, submitted in late April, could yield CAD $96.3 billion in GDP impact and support over 433,000 job-years for Canadians during the initial acquisition period from 2026 to 2044. This proposal aims to foster long-term economic advantages through industrial partnerships, supply chain growth, workforce development, technology collaboration, and sustained investment across Canada.
Crucially, these evaluations do not encompass the potential economic impacts of future defense equipment manufacturing opportunities affiliated with APMA member companies, as well as recently announced LNG and hydrogen investments that could further enhance the proposal’s benefits for Canada. Flavio Volpe, President of APMA, emphasized this potential at the MOU signing event on June 1, noting that the collaboration could create up to 30,000 direct and indirect jobs in Ontario.
Additionally, Hanwha is set to launch a Venture Capital Fund (VCF) aimed at nurturing the investment and growth of innovative Canadian companies across sectors such as defense, shipbuilding, artificial intelligence, aerospace, nuclear technologies, and other advanced technology fields. This approach is designed to fortify Canada’s industrial base and promote the next generation of high-growth industries.
Hanwha Ocean’s proposal is also pivotal for Canada’s submarine fleet recapitalization, with a commitment to deliver the first four submarines by 2035 and the capacity to complete all 12 submarines by 2043.
Overall, in conjunction with the expanding industrial, energy, and economic cooperation between Canada and the Republic of Korea, Hanwha Ocean believes this proposal represents a nation-building opportunity, augmenting Canada’s defense capabilities while enhancing industrial capacity, generating high-value jobs, attracting sustained investment, and positioning Canada for continued economic growth and competitiveness in the years to come.
About Hanwha Ocean
Hanwha Ocean is a distinguished global shipbuilder, recognized for over four decades of expertise in intricate naval and commercial shipbuilding programs. The company operates a large-scale, integrated shipyard in Geoje, South Korea, covering 5 square kilometers and employing more than 31,000 personnel. This robust operational framework allows Hanwha Ocean to deliver modern, in-service naval platforms bolstered by a resilient lifecycle support model.
Since its inception in 1973, Hanwha Ocean has successfully delivered more than 1,400 vessels globally and possesses extensive knowledge in the design, construction, and maintenance of submarines and surface combatants for the Republic of Korea Navy. The company manufactures about 45 commercial and naval ships annually.
For more details, please visit: www.hanwhaocean.com/en.
