Hanwha Ocean has signed a memorandum of understanding (MOU) with eleven South Korean companies involved in submarine construction to jointly pursue opportunities in Saudi Arabia and the wider Middle Eastern market.
The agreement was concluded while Hanwha Ocean was participating in the World Defense Show (WDS) 2026. Representatives from companies including Hanwha Aerospace, LIG, KTE, Kolon Spaceworks and Firstec attended the signing, alongside other partners from Korea’s naval and defense industrial base.
According to Hanwha Ocean, the partnership is aimed at establishing a coordinated approach to potential submarine programs in the region, combining platform construction, combat systems, equipment supply and long-term support capabilities.
As part of its market engagement, Hanwha Ocean is showcasing the KSS-III (Jang Bogo) Batch-II lead submarine Jang Yeongsil, which is currently undergoing sea trials. The KSS-III Batch-II is the latest evolution of South Korea’s indigenous submarine program and is designed for extended underwater endurance and multi-mission operations.
During its activities in Saudi Arabia, Hanwha Ocean and its partner companies have explored possible areas of technological cooperation with local firms in line with the Kingdom’s Vision 2030 initiative. These discussions have included reviews of local production capabilities as well as research and development infrastructure, with a view to supporting industrial participation and localization.
Hanwha Ocean stated that insights gained from these engagements will be used to develop more detailed cooperation frameworks and localization strategies tailored to regional requirements. This includes plans to support localized maintenance, repair and overhaul (MRO) capabilities intended to sustain submarine operations over a service life of at least 30 years.
The MOU reflects South Korea’s broader effort to position its naval platforms and industrial ecosystem for export markets in the Middle East, where several countries are seeking to modernize and expand their undersea warfare capabilities.
In a related development, Hanwha Ocean has also deepened industrial cooperation for the Canadian Patrol Submarine Project (CPSP), a major initiative to replace Canada’s aging diesel-electric submarine fleet.
Last month, Hanwha and Babcock Canada agreed on a partnership framework that places long-term employment, skills transfer and industrial participation in Canada at the core of their joint approach to CPSP.
Under the collaboration, Hanwha Ocean would bring its KSS-III submarine platform and construction expertise, while Babcock is to lead efforts on sustainment, localization and key subsystems, including weapons handling and launch discharge systems.
The CPSP aims to acquire up to twelve submarines for the Royal Canadian Navy, with significant emphasis on sovereign sustainment, workforce development and industrial capability in Canada.